- Sterling peeking to the upside ahead of a quiet Tuesday session.
- BoE action on Thursday could leave GBP traders on the sidelines for the time being.
The GBP/USD is managing to catch some lift ahead of the London market session for Tuesday, rising into 1.3270 in the Asian markets.
The GBP has been clattering along the bottom against the Greenback this week, with the pair sticking close to lows near 1.3230 in Monday's trading, a level the GBP/USD became familiar with after bottoming out in late May. The pair managed to stage a technical recovery to the 1.3470 region for a brief moment, but confidence in the Sterling has remained muted, keeping the pair close to lows for the time being.
Tuesday sees little action on the Sterling side of things, and overall market sentiment can be expected to remain in the captain's chair. Markets have turned cautious in early Tuesday action after the US ramped up the trade war rhetoric, promising to impose yet further tariffs on China with the US Treasury Department seeking an additional $200 billion in tariffs on Chinese imports. Market sentiment soured on the reaction, and risk flows have been put in a defensive stance early on in the week.
The upcoming US session sees mid-tier Housing Starts (forecast 1.317 million, prev. 1.287 million) and Building Permits (forecast 1.350 million, prev. 1.352 million) for the month of May, both dropping at 12:30 GMT. GBP traders are likely to have their focus turned to the Bank of England's (BoE) next rate decision, coming in this Thursday, and whil the BoE is already expected to remain steady on rates for the time being, traders will be looking for changes in the central bank's rhetoric or outlook.
GBP/USD levels to watch
FXStreet's own Valeria Bednarik notes that despite the Sterling's bearish activity as of late, potential remains for a mild recovery from the current levels: "the 4 hours chart for the pair shows that it remains well below a bearish 20 SMA, while technical indicators have managed to post modest bounces from near oversold readings, still far below their midlines and therefore from suggesting a possible recovery ahead. The main support is Friday's low at 1.3210, with a break below the level probably triggering a steeper decline for this Tuesday."
Support levels: 1.3210 1.3170 1.3135
Resistance levels: 1.3300 1.3345 1.3390
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.