GBP/USD Price Forecast: Falls towards 1.3400 near 50-day EMA
The GBP/USD pair continues its losses for the second session in a row, trading around the 1.3420 level during the Asian hours on Monday. Technical analysis on the daily chart indicates that the 14-day Relative Strength Index (RSI) at 53 (neutral) has retreated from nearly overbought territory, indicating that momentum has slowed while remaining above the mid-line. The Relative Strength Index holds above 50, maintaining a modest bullish bias.
The nine-day exponential moving average (EMA) lies above the 50-day EMA, and maintains an upward slope as the price consolidates below the short-term average but stabilizes above the medium-term line. This indicates a shallow pullback within the prevailing uptrend. The short-term trend is pausing with the 9-day moving average holding steady, while the rising 50-day moving average supports the broader advance. Read more…
GBP/USD trades with modest losses below mid-1.3400 areas as US dollar geopolitical tensions rise
GBP/USD opens with a modest gap down at the start of a new week and trades just below the mid-1.3400s during the Asian session, down 0.10% on the day. However, spot prices lacked a follow-up sell-off and managed to hold above last week’s swing lows amid mixed fundamental signals.
Against the backdrop of the long-running war between Russia and Ukraine and turmoil in the Middle East, the US military attack on Venezuela increases concerns about escalating geopolitical tensions and drives some safe-haven flows towards the US dollar (USD). This is helping the US Dollar Index (DXY), which tracks the greenback against a basket of currencies, build on its recent rebound from the lowest level since early October, and is turning out to be a major factor putting pressure on the GBP/USD pair. Read more…
