GBP/USD Price Forecast: Bullish outlook remains in play near 1.3500
The GBP/USD pair edges lower to around 1.3500 during the early European session on Monday, bolstered by a modest rebound in the US Dollar (USD). However, the potential downside for the major pair might be limited amid rising expectations that the US Federal Reserve (Fed) will lower interest rates this year following Friday’s downbeat US jobs report.
Technically, the constructive outlook of GBP/USD remains in play, with the price being well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. However, further consolidation or temporary sell-off cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the midline. This displays the neutral momentum in the near term.
The first upside barrier emerges at 1.3550, the high of September 1. A decisive break above this level could pick up more momentum and aim for 1.3584, the upper boundary of the Bollinger Band. Further north, the next resistance level is seen at 1.3752, the high of June 27.
On the downside, the low of August 21 at 1.3405 acts as an initial support level for GBP/USD. A breach of this level could drag the major pair toward 1.3381, the 100-day EMA. Extended losses could see a drop to 1.3333, the low of September 3.
Source: FXstreet
