The pair remains supported above its 20-day EMA as investors await June FOMC minutes for Fed policy clues.
The British Pound trades near 1.3380 against the US Dollar in European trading, slightly lower as the US Dollar Index edges up 0.1% to 100.90. Despite the minor dip, GBP/USD maintains a constructive tone, supported by stability above its 20-day Exponential Moving Average at 1.3320.
The pair has rallied from near 1.3140 two weeks ago, with the Relative Strength Index at 55.7 signaling mild bullish momentum. Investors are focused on Wednesday’s release of the Federal Open Market Committee minutes, which may provide insights into the Federal Reserve’s monetary policy outlook.
In the UK, optimism over fiscal continuity amid leadership changes is bolstering the Pound. The US Dollar’s cautious trading reflects anticipation of the FOMC minutes, which could influence near-term market direction.