GBP/USD Price Forecast: Consolidates below mid-1.3500s; bullish potential seems intact
The GBP/USD pair struggles to capitalize on the previous day's modest gains and oscillates in a range below mid-1.3500s during the Asian session on Tuesday. The downside, however, remains cushioned as the US Dollar (USD) selling remains unabated on the back of a broadly firmer Japanese Yen (JPY).
The GBP/USD currency pair remains in a range below mid-1.3500s during the Asian trading session on Tuesday. Factors such as a strong Japanese Yen and geopolitical tensions are preventing further gains for the British Pound. However, there is potential for a bullish trend, as indicated by technical analysis. The pair is trading above the 200-period Simple Moving Average and is supported by a cluster of Fibonacci levels.
Analysts expect further recovery if the trend persists, with the next resistance level at 1.3549. On the downside, support can be found at the 200-period SMA and the 38.2% retracement level. The Pound Sterling's value is primarily influenced by the Bank of England's monetary policy decisions, aimed at maintaining inflation around 2%.
Economic data releases, including GDP and Trade Balance figures, can also impact the currency's value. Additionally, the trade balance and employment data are significant indicators for the Pound Sterling.
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