GBP/USD Price Forecast: Retains bullish bias above 1.3550 above the 100-day EMA
- GBP/USD trades with mild gains around 1.3440 in Monday’s Asian session.
- The pair keeps the bullish vibe above the 100-day EMA, but consolidation cannot be ruled out in the near term.
- The immediate resistance level is seen at 1.3588; the initial support level is located at 1.3365.
The GBP/USD pair posts modest gains near 1.3440 during the Asian trading hours on Monday. The latest optimism fueled by a trade deal between the United States (US) and the European Union (EU) triggers a fresh wave of the global risk-on sentiment, which boosts the Pound Sterling (GBP). All eyes will be on the US Federal Reserve (Fed) interest rate decision later on Wednesday, with no change in rate expected.
Technically, GBP/USD keeps the bullish vibe on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). However, further consolidation or temporary sell-off cannot be ruled out in the near term as the 14-day Relative Strength Index (RSI) holds below the midline near 43.25.
The first upside target to watch for the major pair is seen at 1.3588, the high of July 24. Extended gains could see a rally to 1.3681, the high of July 4. Further north, the next hurdle is located at 1.3725, the upper boundary of the Bollinger Band.
On the other hand, the initial support level for GBP/USD emerges at 1.3365, the low of July 16. A breach of this level could expose 1.3330, the lower limit of the Bollinger Band. The additional downside filter to watch is 1.3236, the low of May 8.
GBP/USD Daily Chart
