Pound Sterling Price News and Forecast: GBP/USD struggles to attract buyers

GBP/USD Forecast: Pound Sterling struggles to attract buyers

GBP/USD stays in positive territory above 1.3300 in the European session on Tuesday after posting small gains on Monday. The technical outlook, however, fails to provide any directional clues as investors remain reluctant to take large positions ahead of the Federal Reserve (Fed) and the Bank of England’s (BoE) monetary policy meetings.

The US Dollar (USD) found support in the second half of the day on Monday and limited GBP/USD’s upside as markets assessed the US data. The ISM Services Purchasing Managers Index (PMI) rose to 51.6 in April from 50.8 in March. (BoE) rate decisions on Wednesday and Thursday respectively.

The promising pattern is developing near 1.3250, a support area that has been holding for two weeks, with the rising 20-day simple moving average (SMA) adding extra credence to the region. This suggests a rebound could be brewing. However, the long-term resistance trendline from June 2021 has resumed its role near 1.3285 and the bulls will have to successfully breach that border to activate fresh buying. Read more…