- The GBP/USD quotes about 1,3382 while geopolitical risks and Fed increase the attractiveness of the secure refuge dollar.
- The BOE is maintained with a 6-3 vote; Bailey hints at a gradual path of feat cuts in weak labor data in the United Kingdom.
- Operators observe retail sales from the United Kingdom and the Fed Fed data in the midst of a weak American trade for holidays.
The sterling pound is traded within family levels after reaching a minimum of four weeks of 1,3382, profits of more than 0.03% against the dollar are recovered and recorded in front of the dollar after the decision of the Bank of England (BOE) to maintain the rates without changes. The growing geopolitical risks continued to limit the GBP/USD, while the US dollar extended its recovery.
The pound recovers from a minimum of four weeks while the BOE indicates a cut in August; The US dollar remains up for tension in the Middle East
Previously, the Boe’s decision to maintain rates with a 6-3 vote, which was caused by the sudden increase in oil prices, related to the conflict between Israel and Iran. The Bank acknowledged that the United Kingdom labor market is weakening, which, according to investors, suggests that more relief will occur in the future.
The Minutes of the Bank of England (BOE) showed that there is a growing consensus among the members of the Monetary Policy Committee (CPM) to reduce fees at the August meeting. The governor of the BOE, Andrew Bailey, reinforced the bank’s DOVISH position, saying that “interest rates remain on a gradual road down”, although “the world is highly unpredictable.”
On the other side of the Atlantic, the US markets are closed in observance of the Juneteenth holiday, but the news related to a possible involvement of the US in the Middle East conflict to attack Iran’s nuclear facilities keep investors inclined towards the attractiveness of the US dollar as a safe refuge.
On Wednesday, the Federal Reserve (FED) kept the rates in the range of 4.25 – 4.50%, showing reluctance to cut fees, despite the demands of US President Trump. The Fed cited that politics is moderately restrictive but is in a good position and that the labor market is still solid. Powell added that the Fed is evaluating the impact of tariffs on the economy, while repeating that uncertainty remains high.
Given the context, the GBP/USD torque is consolidated while the operators expect a series of data. The United Kingdom’s economic agenda will include May retail sales. In the US, the programming will be light, since the Fed of Philadelphia will update the state of business activity in its region.
GBP/USD price forecast: technical perspective
The upward GBP/USD trend is at risk since the pair fell below 1,3400 and tested the 50 -day SMA in 1,3385. Although buyers raised the change rate again above 1,3400, the relative force index (RSI) suggests that operators are changing slightly to a bearish position. Therefore, the downward risks remain, unless the RSI rises above its neutral line of 50.
On the positive side, the key resistance levels are found in 1,3450, in 1,3476, the peak of June 18, followed by the 20 -day SMA in 1,3519. On the negative side, the first GBP/USD support is 1,3400, the minimum of 1,3382, and the 1,3300 figure.
LIBRA ESTERLINA PRICE THIS WEEK
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this week. Libra sterling was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.65% | 1.03% | 0.80% | 1.09% | 0.45% | 0.84% | 0.89% | |
| EUR | -0.65% | 0.26% | 0.15% | 0.48% | -0.07% | 0.20% | 0.25% | |
| GBP | -1.03% | -0.26% | -0.10% | 0.18% | -0.33% | -0.06% | -0.01% | |
| JPY | -0.80% | -0.15% | 0.10% | 0.27% | -0.66% | -0.32% | -0.32% | |
| CAD | -1.09% | -0.48% | -0.18% | -0.27% | -0.55% | -0.25% | -0.19% | |
| Aud | -0.45% | 0.07% | 0.33% | 0.66% | 0.55% | 0.28% | 0.33% | |
| NZD | -0.84% | -0.20% | 0.06% | 0.32% | 0.25% | -0.28% | 0.05% | |
| CHF | -0.89% | -0.25% | 0.00% | 0.32% | 0.19% | -0.33% | -0.05% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
