GBP/USD seesaws around 1.3970 amid early Asian session trading on Friday, after renewing the multi-day tops the previous day. The cable pair rose past 100-DMA for the first time since June 23 on Thursday amid stronger RSI and Momentum lines. However, a 20-week-old horizontal area surrounding 1.4005–10 becomes the key hurdle to the pairs further upside, a break of which needs strong catalysts.
GBP/USD Forecast: Fed fuels ascent toward 1.40, only overbought conditions could halt the rally.
“More ground to cover” – the Federal Reserve has said it is waiting for more data before tightening, and that has sent GBP/USD to the highest in a month. While the Fed has expressed content at the progress of the US economy – and has had its first debate about the timing of tapering bond buys – there seems to be no rush.
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