The GBP/USD pair continued its upward momentum, reaching a high of 1.3030 in Tuesday’s session, approaching mid-July highs. The bullish trend in the pair has been gaining ground, with significant momentum being observed in recent trading sessions. This positive movement is likely due to a weakening outlook for the US Dollar, as speculation grows that the Federal Reserve will begin reducing interest rates in September. This has provided strength to the Pound Sterling, pushing it above the psychological resistance level of 1.3000 against the US Dollar.
Despite the Pound Sterling’s strong performance, the GBP/USD pair remains capped below the 1.3000 level, with a slight pullback seen near 1.2980 during the early European session on Tuesday. The modest recovery of the US Dollar has put pressure on the pair, ending its three-day winning streak. The lack of significant data releases from the UK this week means that the price action of the US Dollar will be the primary driver for the GBP/USD pair. Traders will be closely watching for any developments from the Federal Reserve, particularly Fed Chair Jerome Powell’s speech scheduled for Friday.
As the Pound Sterling continues to rise against the US Dollar, the focus remains on the upcoming Jackson Hole symposium, where central bankers and policymakers will gather to discuss important economic issues. The outcome of this symposium could have a significant impact on the currencies involved, including the GBP/USD pair. Traders will be monitoring any statements or decisions made during the symposium, as they could provide further direction for the pair in the near term.
Technical analysis of the GBP/USD pair shows that it is currently trading near mid-July highs, with bullish momentum pushing it towards the 1.3030 level. If the pair manages to break above this level, it could open the doors for further gains towards higher resistance levels. On the other hand, a pullback from current levels could see the pair finding support around the 1.2980 level. Traders will be closely monitoring these key levels, as they could provide trading opportunities based on market sentiment and technical analysis.
In conclusion, the GBP/USD pair is showing strong bullish momentum, with the Pound Sterling rising above the 1.3000 level against the US Dollar. The focus remains on the upcoming events, including the Jackson Hole symposium and Fed Chair Jerome Powell’s speech, which could provide further clarity on the direction of the pair. Traders will be closely monitoring these developments, as they could impact trading decisions in the short term.
