Hot May CPI readings tempered rate-cut hopes and supported the US Dollar as markets assessed the ongoing Middle East truce. DXY showed strong breakout above $100 while EUR/USD tested key support and GBP/USD defended rising channel floor.
GBP/CHF may be offering one of the clearest examples of how monetary policy divergence and technical analysis can reinforce each other. The cross surged to its highest level since January this week, after breaking through key near term resistance at 1.0674.
The Pound to Dollar (GBP/USD) exchange rate edged higher on Wednesday as the US Dollar struggled to capitalise on another rise in inflation, while a lack of major UK economic releases left Sterling trading in a narrow range. At the time of writing, GBP/USD was trading at $1.3401, up around 0.2% on the day despite data showing US inflation.
GBP/USD Price Forecast: Eyes 1.3400 amid modest USD weakness; remains below weekly top
Pound Sterling Price News and Forecast: GBP/USD hovers near 1.3400 as hot US CPI weighs on USD
The GBP/USD forecast remains tilted to the downside as investors await a crucial US inflation report that could further strengthen the case for tighter monetary policy from the Federal Reserve. While the dollar has already enjoyed a strong recovery over recent weeks, upcoming inflation data may determine whether that rally has further room to run.
With the stable Middle East truce reducing geopolitical risk premium, the Dollar consolidated ahead of the May CPI report. DXY held steady at $99.86, EUR/USD defended blue trendline support, and GBP/USD maintained bullish structure above $1.337.
Our previous outlook for GBPUSD still stands, as the pair has held above the 1.3280 support level. GBPUSD managed to hold above 1.3280 and has rebounded toward 1.3500 so far.
British Pound: Further downside risk toward 1.3240 against US Dollar – UOB
Intraday analysis covering GBPUSD Finds support, USDCAD , and XAUUSD, highlighting recent price movements, key technical levels, and short-term momentum shifts across major markets. GBPUSD finds support The pound continues to bounce back after the recent sell-off that saw over 100 pips wiped off the value of cable.
Pound Sterling Price News and Forecast: GBP/USD gains traction to near 1.3390 on Wednesday
With the stable Middle East truce reducing geopolitical risk premium, the Dollar gained ground amid shifting risk sentiment. DXY advanced to $99.94 with bullish continuation, EUR/USD defended blue trendline support, and GBP/USD held $1.3366.