GBP/USD Price Forecast: Sticks to bullish near 1.3400 ahead of BoE decision on Wednesday
The GBP/USD pair attracts some dip-buyers at the start of a new week and climbs back to the 1.3400 mark during the Asian session, stalling its modest pullback from the highest level since September 16 set on Friday.
The GBP/USD currency pair has rebounded to the 1.3400 level during the Asian trading session, after initially climbing back from its lowest point since September 16. The optimism surrounding a possible diplomatic resolution to the US-Iran conflict is weakening the US Dollar, while expectations of tighter monetary policy by the Bank of England are bolstering the British Pound.
However, traders are cautious ahead of the Bank of England's rate decision on Wednesday, where they anticipate a 25 basis point increase. The US economic calendar includes the release of the ISM Manufacturing PMI, ISM Services PMI, and a key Nonfarm Payrolls report on Friday, which may also influence the GBP/USD pair. From a technical standpoint, the pair is currently supported by a bullish bias above the 100-day Simple Moving Average at 1.3387 and the 50.0% Fibonacci retracement level at 1.3407.
Should it maintain its position above the 100-day SMA and these key retracement levels, the GBP/USD pair could continue to climb towards the 1.3471 and 1.3561 levels.
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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