GBP/USD Price Forecast: Falls toward 1.3400 near 50-day EMA
GBP/USD extends its losses for the second successive session, trading around 1.3420 during the Asian hours on Monday. The technical analysis of the daily chart indicates that the 14-day Relative Strength Index (RSI) at 53 (neutral) has eased from near overbought, indicating that momentum has cooled while remaining above the midline. RSI holds above 50, keeping a modest bullish bias.
The nine-day Exponential Moving Average (EMA) stands above the 50-day EMA, preserving a bullish bias as price consolidates below the short-term average but holds over the medium-term line. This suggests a shallow pullback within the prevailing uptrend. The short-term trend pauses as the nine-day EMA flattens, while the rising 50-day EMA underpins the broader advance. Read more…
GBP/USD trades with modest losses below mid-1.3400s as geopolitical tensions lift USD
The GBP/USD pair opens with a modest bearish gap at the start of a new week and trades just below mid-1.3400s during the Asian session, down 0.10% for the day. Spot prices, however, lack follow-through selling and manage to hold above last week’s swing low amid mixed fundamental cues.
Against the backdrop of the protracted Russia-Ukraine war and unrest in the Middle East, the US military attack on Venezuela adds to concerns about rising geopolitical tensions and drives some safe-haven flows towards the US Dollar (USD). This assists the USD Index (DXY), which tracks the Greenback against a basket of currencies, to build on its recent recovery from the lowest level since early October and turns out to be a key factor exerting pressure on the GBP/USD pair. Read more…