British Pound bulls seem hesitant above 1.3300 as USD steadies on Fed, geopolitical risks
The GBP/USD pair bounces off the 1.3300 neighborhood at the start of a new week, stalling Friday's modest pullback from its highest level since September 23.
The British Pound (GBP) struggled to gain momentum above the 1.3300 level on Monday as the US Dollar (USD) steadied following comments from Federal Reserve (Fed) Chair Kevin Warsh. The USD dropped to a two-week low on Friday, paring a four-week winning streak amid falling US government bond yields and cooler-than-expected inflation data.
While the market anticipated a near 90% probability of a December rate hike by the Fed, geopolitical risks, particularly in the Middle East, kept the safe-haven British Pound in play. The BoE signaled a potential November rate increase, providing support for the GBP. Currently, GBP/USD trades below the 100-day SMA and the 50.0% Fibonacci retracement, with key resistance near 1.3343 and support at 1.3265.
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