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GBP/USD holds above 1.3350 as 200-day SMA caps recovery

The pair is trading near 1.3378, with traders watching a likely CPI miss-moderation ahead of US central bank testimony.

Reported · Written up by our desk · Major Pairs

The British pound edged higher versus the US dollar on Tuesday, trimming earlier losses and returning to the 1.3375 area, as GBP/USD holds above 1.3350.

FXStreet said the rebound is now aimed at retesting the 200-day simple moving average, which sits just below 1.3400 and has limited gains over the past two weeks. The pair was last quoted around 1.3378.

Market participants were described as cautious, with the US dollar weaker in the run-up to US Consumer Price Index data expected to show some moderation in prices but still above the Federal Reserve’s 2% target. After CPI, the outlet noted Fed Chairman Kevin Warsh is set to begin congressional hearings this week.

Technically, FXStreet cited that the 200-day SMA around 1.3397 could be difficult to clear, and if it breaks, the June 15 and July 10 highs near 1.3455 may be targeted. On the downside, it pointed to support around 1.3330, followed by the broken trendline near 1.3290 and highs from June 22 and 30 around 1.3270.

Latest closeGBP/USD 1.335 ▼0.5%

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