In the short-term forex markets, we have seen a bit of US dollar soften a touch. At this point, the markets continue to see volatility.
GBPUSD is testing the 1.3555 resistance as the chart shows the ability for more advance. As we see over the chart and as long as the market holds above 1.3470, more advance is likely toward 1.3655 and 1.3730.
There will be some key data from the UK to watch this week, which could set the tone for the pound, while the macro calendar in the US is a lot quieter. Once again, much of the market's direction may therefore come down to crude oil.
GBP/USD Price Forecast: Bulls press toward 1.3600 as uptrend strengthens
Pound Sterling Price News and Forecast: GBP/USD stretches to three-month highs at 1.3570
Sterling enters this week on a mixed footing. Last month's Bank of England decision struck a notably hawkish tone, with the vote split 6-3 in favor of holding rates, three members pushed for a hike, a signal the Bank remains genuinely worried about inflation as Middle East-driven energy costs work through the economy.
The British Pound could rebound against the Canadian Dollar if softer inflation weighs on the Loonie, while firmer UK jobs and CPI data support Sterling. The Pound Canadian Dollar (GBP/CAD) exchange rate wavered down to a two-week low last week, despite UK GDP figures, as oil prices rose.
British Pound: Uptrend intact toward 1.3600 cap against US Dollar – UOB
British Pound: Data mix limits sustained gains against US Dollar – BBH
Pound Sterling Price News and Forecast: GBP/USD hits three-month high as weak US sales deepen USD slide
We still hold our previous projection for GBPUSD. As we see over the daily chart, a possible triangle formation could hold the market inside the 1.3140-80 support and 1.3505-55 resistance.
British Pound strengthens against US Dollar as traders price out hawkish Fed bets