GBP/USD Stays Below 1.3550 as US Dollar Gains Strength
The GBP/USD pair is still trading below 1.3550 as the US dollar shows signs of recovery. This bounce in the dollar is seen as a technical correction after recent losses. The recovery is supported by stronger US economic data, which is making the dollar more attractive again.
Traders believe the rise in GBP/USD earlier was just a short-term move. Now, with the dollar gaining back some strength, the pair is under pressure again. The current price action suggests that the pound is struggling to break through key resistance levels.
Looking at the technical side, GBP/USD is having a hard time staying above 1.3550. This area is seen as a strong resistance. If the pair can’t move above it, sellers might take control again. Right now, the 20-day and 200-day Simple Moving Averages (SMAs) are also close by, which adds to the pressure.
On the downside, if GBP/USD drops below 1.3500, it could move toward 1.3450. A deeper fall may take the pair all the way to 1.3375, which was the low seen in May.
Impact: If the US dollar keeps rising and the pound stays weak, GBP/USD could move lower. Traders might wait for new data to confirm the next trend.