GBP/USD Trades Higher in European Session
- Pair Maintains Bullish Momentum Above 1.3150
- Fed and BoE Policy Decisions Awaited
- Key Resistance at 1.3200
The GBP/USD pair shows positive movement in the European session on Monday, reaching levels above 1.3150, marking its highest point in over a week. Despite this bullish trend, investors may adopt a cautious approach ahead of upcoming monetary policy announcements from the Federal Reserve (Fed) and the Bank of England (BoE) later this week.
British Pound Performance This Week
The table below displays the percentage change of the British Pound (GBP) against major currencies this week, with the GBP showing strength against the US Dollar:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
The heat map indicates the percentage changes of major currencies against each other, providing valuable insights into currency performance.
Market Insights and Analysis
The US Dollar faces selling pressure following a decline against major counterparts last week. Key observations and analysis include:
- Speculation on the Fed’s rate cut at the September meeting.
- Producer Price Index (PPI) data showing slower growth in August.
- Market pricing a 60% probability of a 50 basis points Fed rate cut.
As we await the BoE and Fed policy decisions, the UK’s Office for National Statistics will release the Consumer Price Index (CPI) data for August on Wednesday.
Technical Analysis for GBP/USD
Technical indicators for GBP/USD suggest:
- RSI indicator climbing above 60.
- Pair closing above the 100-period SMA.
- Immediate resistance at 1.3200.
- Support levels at 1.3140-1.3130 and 1.3100.
Pound Sterling FAQs
Frequently Asked Questions about Pound Sterling (GBP) cover key aspects such as:
- Historical significance and trading volume of GBP.
- Factors influencing GBP value, including BoE decisions, economic data, and trade balance.
Stay informed and make well-informed financial decisions with these insights into the GBP/USD pair and Pound Sterling performance.