The British Pound rises to a two-month high against the US Dollar as Fed rate hike expectations fade and technical momentum strengthens.
GBP/USD advanced to 1.3555 on Monday, its highest level since May 12, as the US Dollar weakened amid diminishing expectations of an imminent Federal Reserve rate hike. The US Dollar Index (DXY) fell to 99.30, its lowest since June 5, supporting the Pound’s rally.
The pair’s uptrend gained traction after breaking key moving averages, including the 50-day, 100-day, and 200-day SMAs. Analysts at UOB Group revised their stance, calling their earlier neutral outlook “premature” after GBP/USD breached resistance at 1.3555. They now expect further gains toward 1.3600, though resistance remains firm.
Technical indicators reinforce the bullish bias, with the Relative Strength Index (RSI) at 64.9 and the MACD in positive territory. A drop below 1.3495 would be needed to signal a reversal, UOB said.