GBP/USD Price Analysis: Rises back above the 1.2200 mark, supported by 50-DMA

GBP/USD bull run pauses ahead of FOMC meeting.
Odds are rising for BoE’s potential pause in a rate hike.
UK CPI data are likely to be overshadowed by the Fed decision.

GBP/USD's bull run stalls at a long-ended descending trendline originating from the 1.3768 mark on a daily timeframe. This bullish surge is driven by broad-based US Dollar weakness amid falling US Treasury yields. Additionally, increasing expectations for the Bank of England (BoE) to pause rates at their upcoming meeting also support the bullish momentum for Cable.

With the bullish bias intact, a convincing break above the trendline could propel the pair toward the twice-tested 2023 high. Downside declines will likely be limited by the 50-Day Moving Average (DMA), situated below the previous day's low at around 1.2146. A convincing break below this level would likely lead the pair to confront the 21-DMA at the 1.2016 level.

The last line of support is observed at 1.1800, beyond which there is a vast uncharted territory.

The Relative Strength Index (RSI) signals a higher high, supporting further bullish momentum.

Market participants are now focused on the UK Consumer Price Index (CPI) data released on Wednesday and the highly anticipated Federal Reserve (Fed) policy decision. The significance of the upcoming Fed meeting is likely to overshadow the UK's CPI data.

All key levels will be monitored closely during the Fed event.

GBP/USD: Daily chart

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.