GBP/USD holds onto high ground ahead of dual central bank appearances and US ISM data
GBP/USD remains bolted firmly to multi-year highs above 1.3700.
Despite middling UK economic data, the Pound Sterling is holding steady against the waffling Greenback.
BoE Governor Bailey and Fed Chair Powell are both due to make an appearance early Tuesday.
GBP/USD continues to knock into multi-year highs above the 1.3700 handle, with the pair keeping afloat on thin intraday volumes on Monday. Greenback flows continue to tilt into the bearish side, keeping Cable price action on rails and limiting the downside.
UK economic data broadly failed to move the needle on Monday, and Cable traders will be pivoting to Tuesday’s double-header appearance from Bank of England (BoE) Andrew Bailey and Federal Reserve (Fed) Chair Jerome Powell. Both central bank heads will be participating in the European Central Bank’s (ECB) Forum on Central Banking 2025, which is being held in Sintra, Portugal.
Also coming up on Tuesday, US ISM Manufacturing Purchasing Managers Index (PMI)data for June will be released later in the day. Median market forecasts are expecting aggregated business sentiment survey results to tick upwards to 48.8 from 48.5. However, investors will be keeping an eye out for any unexpected drops in business expectations as the Trump administration's sweeping tariff policies, including a global 10% tariff on all goods being imported into the US, as well as an eye-watering 50% tariff on all steel and aluminum imports, begin to take chunks out of the US domestic economy.
GBP/USD price forecast
GBP/USD caught an extended ride into fresh 44-month highs last week, testing above 1.3770 for the first time since October of 2021. The pair is on pace to close in the green for a fifth straight month as the US Dollar broadly weakens across the board.
Cable bidders may be flying too close to the sun as GBP/USD prices quickly outrun rising trendlines, with price action trading well above the 200-day Exponential Moving Average (EMA) near 1.3020. Technical oscillators are pinned in overbought territory, warning of a potential pullback on the cards.
GBP/USD daily chart
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
