GBP/USD clings to bullish stance despite pullback

GBP/USD Forecast: Pound Sterling clings to bullish stance despite pullback

GBP/USD corrects lower and trades slightly below 1.3550 on Tuesday after setting a new multi-year peak near 1.3600 on Monday. The pair remains technically bullish but struggles to preserve its momentum.

The broad-based US Dollar (USD) weakness on growing concerns over the fiscal outlook helped GBP/USD stretch higher at the beginning of the week. With financial markets remaining closed in observance of the Memorial Day holiday, however, the trading action turned subdued in the second half of the day on Monday, limiting GBP/USD’s upside. Read more…

GBP/USD’s bullish streak hits a wall

GBP/USD was trading with softer positive momentum during Tuesday’s early European session, following a surge to a new three-year high of 1.3592 on Monday.

Stronger-than-expected CPI inflation and business PMI figures, combined with a weakening US dollar, triggered a fresh rally last week. However, with the pair now testing a tentative resistance line that connects the highs from July 2023 and September 2024 at 1.3590– after six consecutive winning sessions – a slowdown may be on the horizon. Notably, both the RSI and the stochastic oscillator are approaching overbought territory, increasing the likelihood of a near-term pullback. Read more…