GBP/USD Price Forecast: Pound holds above 1.3350 with the 200-day SMA capping gains

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GBP/USD bounces up from the 1.3350 area and returns to 1.3375.
The US Dollar gives away gains as the market braces for US CPI data and Fed Warsh's testimony to Congress.
Pound bulls remain capped below the key 200-day SMA, at the 1.3400 area.

The British Pound (GBP) appreciates against the US Dollar (USD) on Tuesday to trim previous losses and return to the 1.3375 area, aiming to retest resistance at the key 200-day Simple Moving Average (SMA). This is a popular indicator, which lies a few pips below 1.3400 and has been capping Pound’s recovery over the last two weeks.

Markets are hesitant on Tuesday with the US Dollar a tad lower as investors await the release of US Consumer Prices Index (CPI) figures, which are expected to show a slight moderation in prices, yet at levels well above the Federal Reserve’s (Fed) 2% rate. After that Fed Chairman Kevin Warsh will face the first of the two hearings before the US Congress scheduled for this week.

The Pound has been holding a positive trend since Prime Minister Keir Starmer resigned in late June. Investors are confident that Andrew Burnham, the best-positioned candidate to replace him, will respect Chancellor Reeves' fiscal rules.

Technical Analysis: Key resistance is at the 1.3400 area

GBP/USD trades at 1.3378. The pair broke the downtrend resistance line from May highs but remains capped below the 200-day simple moving average (SMA) at 1.3397. Momentum indicators in the daily chart are neutral-to-bullish with the Relative Strength Index (RSI) hovering just above 50 and the Moving Average Convergence Divergence (MACD) in positive territory.

The mentioned 200-day SMA around 1.3397, however, is likely to be a tough nut to crack. If that level is broken, the June 15 and July 10 high, near 1.3455, will be targeted. On the downside, the floor of the last two weeks' trading range, at 1.3330, is likely to challenge bears. Further down, the broken trendline, now at 1.3290, and the June 22 and 30 highs around 1.3270 emerge as the next targets.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.18%	-0.26%	-0.18%	-0.52%	-0.50%	-0.97%	-0.35%
EUR	0.18%		-0.08%	0.02%	-0.35%	-0.33%	-0.79%	-0.17%
GBP	0.26%	0.08%		0.11%	-0.25%	-0.23%	-0.71%	-0.09%
JPY	0.18%	-0.02%	-0.11%		-0.35%	-0.35%	-0.82%	-0.21%
CAD	0.52%	0.35%	0.25%	0.35%		0.00%	-0.45%	0.17%
AUD	0.50%	0.33%	0.23%	0.35%	-0.01%		-0.47%	0.18%
NZD	0.97%	0.79%	0.71%	0.82%	0.45%	0.47%		0.62%
CHF	0.35%	0.17%	0.09%	0.21%	-0.17%	-0.18%	-0.62%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

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