GBP/USD Moves Higher as Dollar Weakens – Pound Aims for 1.3400
The British pound is rising for the second day in a row, showing strength against the US dollar. GBP/USD is now trading above the mid-1.3300 level after bouncing back from last week’s low near 1.3260.
The main reason for this move is the weaker US dollar. Traders believe the US Federal Reserve might cut interest rates two more times this year, which is pulling the dollar down. Also, easing tensions between the US and China have improved market mood, making investors more open to risk and less interested in holding the dollar.
The Bank of England, on the other hand, is expected to keep interest rates steady for now, which supports the pound.
On the chart, GBP/USD has climbed above the 23.6% Fibonacci retracement level, showing signs that it can move higher. But some technical indicators suggest the market may slow down before making another big move.
If buyers stay in control, the pair could rise toward 1.3400–1.3425. If selling pressure returns, the pair may fall toward 1.3330, 1.3300, or even 1.3260.
Impact:
The pound might continue to climb if the dollar stays weak. But if sellers step in, GBP/USD could slip below 1.3300 in the short term.
