GBPUSD gradually recovering, as the US Dollar begins its downward trend.
The GBPUSD returning to its 29-month high of 1.3266, which established on Tuesday. The pair is aided by increased selling in the US Dollar. Even as risk-off flows dominate. Following the poor outlook provided by Nvidia, the American AI titan.
The focus now switches to the US Q2 GDP figures, which will provide fresh trading momentum in GBPUSD.
The contrasting monetary policy outlooks of the US Federal Reserve (Fed). And the Bank of England (BoE) continue to favor the The GBPUSD is on an uptrend.
Moreover the pair’s future rise is dependent on the impending second estimate of the US Q2 Gross Domestic Product (GDP). And acceptance above the 21-Simple Moving Average (SMA) on the four-hour chart.
GBPUSD Technical Outlook
The 21-day SMA is now oscillating at 1.3210. Recapturing the latter on a four hourly candlestick closing basis is required to take on the psychological level of 1.3250.
Furthermore Fresh buyers are expected to appear above. That level, pushing the price to a two-year high of 1.3266 on its way to the round number of 1.3300.
If GBPUSD fails to get a strong foothold above the 21-SMA. Moreover Sellers will re-enter the market, pulling it back toward the 50-SMA at 1.3120.
Moreover In contrast, the Relative Strength Index (RSI) points North near 60. Indicating that the recovery pattern could continue.
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