GBP/USD Price Forecast: Bulls press toward 1.3600 as uptrend strengthens
GBP/USD edges higher on Monday as fading expectations of an imminent Federal Reserve (Fed) rate hike drag the US Dollar (USD) lower and lift the British Pound (GBP) to its highest level since May 12.
The GBP/USD currency pair climbed to a fresh two-month high above 1.3550 on Monday as traders discounted expectations of a forthcoming Federal Reserve rate hike, which weighed on the US Dollar. Since mid-May, the pair has held above 1.3550, underscoring the strength of its upward trend. Traders noted that the recent breakout above the 1.3555 level – the highest since May 12 – indicates that the bullish bias remains intact.
However, the rally may face resistance around the 1.3600 mark. Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest that buyers retain the upper hand in the short term. Should the pair break above 1.3700, it could potentially scale new heights, testing the current year's high of 1.3850.
Conversely, a dip below 1.3500 would provide initial support. The Pound Sterling's value is primarily influenced by the Bank of England's monetary policy decisions aimed at maintaining price stability. Economic indicators, such as GDP, Manufacturing and Services PMIs, and employment data, also play a significant role in determining the Pound's performance.
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