The Pound trades above 1.3350 but struggles to break the 200-day SMA at 1.3397 ahead of US CPI data.
The British Pound (GBP) rose against the US Dollar (USD) on Tuesday, recovering to 1.3378 after earlier losses. The pair remains capped by the 200-day Simple Moving Average (SMA) at 1.3397, a key resistance level over the past two weeks.
Investors await US Consumer Price Index (CPI) figures, expected to show moderating but still elevated inflation above the Federal Reserve’s 2% target. Fed Chair Jerome Powell’s congressional testimony later this week adds to market caution. The Pound has strengthened since late June amid political stability expectations under potential new leadership.
Technical indicators suggest neutral-to-bullish momentum, with the Relative Strength Index (RSI) above 50 and the MACD in positive territory. A break above 1.3397 could open the door to further gains.