GBP/USD Price Analysis: Bulls struggle near two-month top, 5-day SMA offers immediate support
GBP/USD recedes to 1.3160 during the initial hour of Tuesday’s Asian session. The pair refreshed the two-month peak on Monday but failed to stay positive beyond 1.3200.
However, bullish signals from the MACD joins strong RSI, not near the overbought region, favor the GBP/USD buyers to keep the optimism while targeting a resistance line stretched from September 10, at 1.3246 now. In doing so, a clear break above the recent high of 1.3208 becomes necessary.
While the quote is likely to post another U-turn from the mid-1.3200 area, any further upside can be challenged by the August 18 high near 1.3270, a break of which could challenge the yearly top surrounding 1.3485.
GBP/USD Forecast: Brexit returns to the limelight
The GBP/USD pair is ending the first day of the week unchanged around 1.3150, after reaching a fresh two-month high of 1.3207. The British Pound found eased as speculative interest rushed into the greenback on positive coronavirus vaccine news, but its slump was limited by encouraging Brexit headlines. UK Finance Minister Rishi Sunak said that significant progress was made in Brexit talks while announcing a plan to provide stability to the financial sector in the post-Brexit era. Meanwhile, EU’s chief Brexit negotiator Michel Barnier said they are redoubling their efforts to reach an agreement on the future EU-UK partnership.
