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GBP/USD stays below 1.3500 as traders eye UK GDP
The outlook turns cautious ahead of the Q2 UK GDP release, with firmer USD and inflation and US Fed rate hike risks tied to volatile oil prices cited as key drivers.
GBP/USD trades with a negative bias for a second straight day and remains below the 1.3500 psychological level during the Asian session, according to FXStreet. The pair’s downside is seen as potentially limited as traders may wait for incoming UK macro data before placing directional bets.
FXStreet points to the upcoming UK Q2 GDP report as a key catalyst, while also citing modest USD strength. The newsletter links the USD’s ability to build on a prior bounce after the post-CPI swing low to inflation risks from volatile oil prices and to geopolitical uncertainty from the US-Iran standoff, which it says weighs on the GBP/USD.
On the technical side, FXStreet notes spot prices have been oscillating in a one-week range, aside from an overnight bullish spike, and that the pair maintains a mildly bullish near-term tone above the 100-period simple moving average on the four-hour chart. However, momentum signals are described as less supportive, with the RSI near neutral and MACD slipping slightly below zero.
FXStreet adds that a move below the pivot area around 1.3491 could trigger technical selling and leave the pair vulnerable to a fall toward the 100-period SMA near 1.3415. It says sustained defense of support would keep the bullish bias intact, while a clean break could open the door to a deeper corrective phase on the four-hour chart.
Latest closeGBP/USD 1.349 ▼0.1%