GBP/USD Price Forecast: Immediate resistance level emerges above 1.3450
The GBP/USD pair attracts some buyers to around 1.3430 during the early European trading hours on Monday. The Greenback weakens against the Pound Sterling (GBP) after Federal Reserve (Fed) Chair Jerome Powell said US President Donald Trump threatened him with a criminal indictment, raising concerns over the central bank's independence.
The US Justice Department served the agency with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee about renovations to Fed buildings. Powell called the probe "unprecedented" and said he believed it was opened due to him drawing Trump's ire over refusing to cut interest rates despite repeated public pressure from the president.
"This open warfare between the Fed and the U.S. administration ... it's clearly not a good look for the U.S. dollar," said National Australia Bank's head of currency strategy, Ray Attrill.
Traders will closely monitor the UK jobs data later on Tuesday, as they could offer some hints about market expectations for the Bank of England’s (BoE) monetary policy outlook. If the reports show weaker-than-expected outcomes, this could weigh on the Cable in the near term.
Technical Analysis:
In the daily chart, the 100-day EMA is rising and provides support at 1.3358, with price still holding above this longer-term average to preserve the broader upward bias. RSI at 51.90 is neutral and edging higher, signaling momentum stabilizes after the recent pullback. A sustained hold above the average could pave the way for a retest of 1.3458, keeping the recovery path intact.
Price sits just below the Bollinger middle band at 1.3458, while the bands have narrowed, reflecting reduced volatility and a consolidation phase. RSI near 52 corroborates a range-bound tone; a firm push higher would improve upside traction. A close above the midline could open a move toward the upper band at 1.3552, whereas weakness toward 1.3365 would put the lower band in play and risk a deeper pullback.
(The technical analysis of this story was written with the help of an AI tool)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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