GBP/USD Faces Resistance at $1.3364 Amid US Dollar Strength
The GBP/USD exchange rate has been impacted by rising US Treasury yields above 5% and strong US fundamentals, causing investor flows to shift towards dollar assets and away from Pound Sterling.
According to Fxstreet, the elevated yields have attracted investor interest in USD assets, resulting in a strengthening greenback. The current price of GBP/USD is $1.3298, up 0.5% on the day, but remains below its long-term moving average (MA-200) at $1.3419.
The technical indicators are mixed, with the MACD signaling a buy and ADX being neutral, while the RSI sits at 65, indicating overbought conditions. The Ichimoku Kijun at $1.3239 forms immediate support, and a directional breakout is expected to occur within the next 2-3 trading days.
The forecast range for GBP/USD is between $1.3232 and $1.3364, with a 73% probability of an upward move and a 27% chance of a downside. A bullish scenario would see price break above $1.3364, while a move below $1.3232 would indicate increased selling pressure.