The GBP/USD pair is trading above 1.3200 on Tuesday, maintaining a positive stance fueled by an optimistic shift in risk sentiment. Despite overbought conditions in the technical outlook, the pair is holding strong at its highest level since March 2022, near 1.3230.
British Pound Price Trend This Week
The British Pound (GBP) has shown strength against major currencies this week, with the strongest performance against the Japanese Yen. The positive momentum in risk sentiment, driven by easing concerns over the Middle East conflict, has supported GBP/USD’s upward trajectory.
In the upcoming US economic docket, key data releases such as the June Housing Price Index and August Conference Board Consumer Confidence Index will be closely monitored. However, the focus is likely to remain on market sentiment and risk perception.
If Wall Street sees a bullish start and risk appetite persists, the US Dollar could face pressure, allowing GBP/USD to extend its gains further.
Technical Analysis of GBP/USD
Despite a slight pullback, the Relative Strength Index (RSI) on the 4-hour chart indicates overbought conditions for GBP/USD. The next resistance levels are at 1.3270 and 1.3300, while support levels are at 1.3200, 1.3160, and 1.3100.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency, dating back to 886 AD, and is the official currency of the United Kingdom. It is heavily influenced by the Bank of England’s monetary policy decisions and key economic indicators such as GDP, PMIs, and employment data.
Overall, the positive momentum in risk sentiment, combined with technical overbought conditions and key data releases, suggests that GBP/USD could continue its upward trend. Traders should monitor resistance levels at 1.3270 and 1.3300, while keeping an eye on support levels at 1.3200, 1.3160, and 1.3100 for potential reversals.