GBP/USD Price Forecast: Holds gains near 1.3200 despite persistent bearish bias
GBP/USD halts its five-day losing streak, trading around 1.3200 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair moves downwards within the descending channel pattern. The near-term bias stays mildly bearish as the GBP/USD pair holds below both the nine-day and 50-day Exponential Moving Averages (EMAs), which cap price action and frame a descending short-term profile.
Additionally, the latest 14-day Relative Strength Index (RSI) hovers near 38 after recovering from oversold territory, indicating fading downside momentum but not yet enough buying pressure to challenge the dominant corrective phase from recent highs. Read more…
Pound Sterling recovers from four-month low vs. retreating USD; upside seems limited
The GBP/USD pair stages a modest recovery from the 1.3160-1.3155 area, or over a four-month trough touched during the Asian session this Tuesday, and for now, seems to have snapped a five-day losing streak. Spot prices rally back above the 1.3200 mark in the last hour, though the upside seems limited on the back of escalating Middle East tensions.
US President Donald Trump suggested on Monday that significant progress had been made in talks aimed at ending US military operations in Iran. Trump also indicated that an agreement was still likely with what he described as a more reasonable regime in Iran. Trump, however, issued a stark warning that the US could launch massive strikes on the Islamic Republic’s key energy infrastructure if a deal is not reached soon and if the Strait of Hormuz is not immediately reopened to commercial traffic. Read more…
