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GBP/USD holds near 1.3200 as USD stays supported

The dollar’s strength is tied to the Federal Reserve’s hawkish outlook and elevated US bond yields, leaving GBP/USD with limited upside.

Reported · Written up by our desk · Major Pairs

GBP/USD struggled to find momentum, trading near the 1.3200 area during the Asian session on Thursday and remaining close to the lowest level since late June, according to FXStreet.

FXStreet cited a broadly bullish tone for the US dollar near an 18 month high, driven by the Federal Reserve’s hawkish outlook, elevated US bond yields, and persistent geopolitical uncertainties, which it said is a headwind for the pound.

The report also pointed to Bank of England expectations for tighter monetary policy as a factor that may provide some support to GBP, helping cap deeper losses.

On the technical side, FXStreet described the past two weeks of range trading as bearish consolidation, noting that the top of the range aligns with the 100 period Simple Moving Average on the four hour chart and that MACD remains negative with a slightly contracting profile.

Latest closeGBP/USD 1.321 ▼0.2%

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