GBP/USD Price Forecast: Fresh downside leg likely below 1.3200
The British Pound (GBP) is down 0.15% at around 1.3234 against the US Dollar (USD) during the early European trading session on Tuesday.
The British Pound (GBP) is currently trading at 1.3234 against the US Dollar (USD), experiencing a decline of 0.15% during the early European trading session on Tuesday. The US Dollar is leading the market as traders await the US JOLTS Job Openings data for August, scheduled to be released at 14:00 GMT. The US Dollar Index (DXY) has risen 0.15% to near 101.33, while the GBP/USD pair is facing pressure from the US Dollar's strength.
Analysts at HSBC predict that around 100 basis points of tightening by the Bank of England (BoE) will be priced in over the next year, but warn that rising energy prices create a challenging policy mix, increasing inflation risks while growth momentum faces difficulties. On the upside, initial resistance can be found at 1.3300, followed by the 20-day Exponential Moving Average (EMA) at 1.3373.
A close above this barrier could help alleviate bearish pressure and lead to a potential recovery. Conversely, if the pair fails to hold the immediate support level at 1.3200, it could extend its decline to near 1.3140.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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