GBP/USD is currently trading in a tight channel above 1.2850 on Tuesday, showcasing a lack of clear direction in the market. Despite touching a three-week low below 1.2810 on Monday, the pair managed to retrace its decline and stabilize slightly above 1.2850. However, the technical analysis suggests that the pair is still struggling to gather recovery momentum.
Investors are hesitant to commit to a directional move in GBP/USD ahead of the upcoming policy meetings by the Federal Reserve and the Bank of England on Wednesday and Thursday, respectively. The market sentiment remains cautious, with the UK’s FTSE 100 Index down 0.3% and US stock index futures trading marginally higher.
Key economic data releases, including the Conference Board Consumer Confidence Index for July and JOLTS Job Openings data for June, will be closely watched in the US. Any significant deviation from market expectations could impact the USD and influence GBP/USD’s movement.
Technical Analysis and Key Levels to Watch
GBP/USD is currently below the descending trend line at 1.2860, with the Relative Strength Index (RSI) indicating a lack of buyer interest. Key support levels include 1.2830, 1.2800-1.2790, and 1.2750, while resistance levels are at 1.2860 and 1.2880.
Impact on Your Finances
For traders and investors, the uncertain market sentiment and upcoming policy meetings by major central banks could lead to increased volatility in the GBP/USD pair. It is essential to stay informed about key economic data releases and technical levels to make informed trading decisions.