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GBP/USD rises as Fed rate-hike expectations fade

GBP/USD was around 1.3555, with the US Dollar Index near 99.45 after slipping to 99.30 earlier.

Reported · Written up by our desk · Major Pairs

GBP/USD edged higher on Monday, helped by fading expectations of an imminent Federal Reserve rate hike that weighed on the US Dollar, lifting the British Pound to its highest level since May 12, FXStreet reports.

At the time of writing, the pair traded around 1.3555 after a late-July recovery that cleared several key moving averages. The US Dollar Index, which tracks the greenback against a basket of six major currencies, was near 99.45 after touching 99.30, its lowest level since June 5.

Technically, FXStreet said GBP/USD retains a bullish bias as it holds above the 50-day, 100-day and 200-day simple moving averages. The daily RSI was 64.9 and the MACD stayed positive, while an ADX reading of 27.6 suggested the uptrend is strengthening.

On levels, FXStreet cited resistance at 1.3600 and 1.3700, with a move above 1.3700 potentially targeting 1.3850. Support was seen first at 1.3500, followed by a demand zone between 1.3417 and 1.3378, and further downside scenarios toward 1.3300 and 1.3150 if the pair corrects more deeply.

Latest closeGBP/USD 1.354 ▲0.3%|Dollar index 99.64 ▼0.3%

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