GBP/USD Price Analysis: Bulls have the upper hand above 1.2800, highest since March
The GBP/USD pair climbs to its highest level since March 14 during the Asian session on Tuesday, albeit struggles to capitalize on the move and is currently placed just above the 1.2800 mark. The near-term bias, meanwhile, seems tilted in favor of bullish traders in the wake of the prevalent selling bias surrounding the US Dollar (USD).
In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, drops to a nearly two-month low on the back of rising bets for an imminent rate cut by the Federal Reserve (Fed), bolstered by Monday's disappointing US ISM PMI. Apart from this, expectations that the Bank of England (BoE) might keep interest rates at their current level for a little bit longer should underpin the British Pound (GBP) and validate the near-term positive outlook for the GBP/USD pair. Read more...
GBP/USD holds positive ground above 1.2800, weaker US Manufacturing PMI weighs on US Dollar
The GBP/USD pair attracts some buyers around 1.2810 during the early Asian session on Tuesday. The uptick of the major pair near multi-week highs is bolstered by the softer US dollar (USD) after the weaker-than-expected US Manufacturing PMI data. Later on Tuesday, the US Factory Orders and JOLTs Job Openings will be released.
The manufacturing sector in the United States contracted at an accelerating pace in May, the Institute for Supply Management (ISM) reported on Monday. The US ISM Manufacturing PMI dropped to 48.7 in May from 49.2 in April, below the market consensus of 49.6. The Greenback faced some renewed selling pressure in response to the downbeat data. Read more...
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