As the world’s best investment manager and financial market journalist, I bring you the latest insights on the GBP/USD pair trading near 1.2875 in Monday’s early European session. Despite a negative outlook, there is potential for upside movement with the bearish RSI indicator on the 4-hour chart.
The current market conditions show a softer Greenback, fueled by expectations of a US Federal Reserve interest rate cut in September. This sentiment is providing support to the GBP/USD pair, with the Fed Interest Rate Decision scheduled for Wednesday.
On the technical side, the Relative Strength Index (RSI) remains below the 50-midline, indicating a bearish outlook. However, a decisive move above the key 100-period Exponential Moving Average (EMA) could signal a trend reversal.
Key resistance levels to watch for include 1.2919, 1.2938, and 1.2990-1.3000, while support levels are at 1.2843, 1.2777, and 1.2739.
GBP/USD 4-hour chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. It is a key player in the foreign exchange market, with GBP/USD being a prominent trading pair. The value of the Pound Sterling is influenced by factors such as monetary policy, economic data releases, and trade balance.
Understanding these factors can help investors make informed decisions and navigate the complexities of the financial markets. Stay tuned for more updates on GBP/USD trading and market trends.