GBP/USD Price Analysis: Holds position below the major level of 1.2650
GBP/USD attempts to continue gaining ground, advancing to near 1.2640 during the Asian trading hours on Tuesday. The pair could meet the immediate resistance at 23.6% Fibonacci retracement and a major level at 1.2650.
A breakthrough above the latter could exert upward support for the GBP/USD pair to test the 50-day Exponential Moving Average (EMA) at 1.2681. Should the pair surpass these levels, it may approach the psychological barrier of the 1.2700 level. Read more...
GBP/USD edges higher amid softer USD, upside potential seems limited
The GBP/USD pair trades with a mild positive bias during the Asian session on Tuesday, albeit lacks follow-through buying and remains below mid-1.2600s, or the overnight swing high. The fundamental backdrop, meanwhile, favours bearish traders and warrants some caution before positioning for an extension of the recent bounce from the 1.2475 area, or a five-week low touched last Friday.
The Bank of England (BoE) Governor Andrew Bailey said last week that expectations of interest rate cuts this year were not unreasonable. This comes after two BoE policymakers, who previously voted for higher rates, changed their positions to keep borrowing costs steady at 5.25%, which might continue to undermine the British Pound (GBP). The US Dollar (USD), on the other hand, stalls the previous day's corrective pullback from the vicinity of the monthly peak amid the optimistic outlook for the US economy. This further contributes to capping the upside for the GBP/USD pair. Read more...
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