GBP/USD TRADES LOWER AROUND 1.3300, RETREATS FROM SEVEN-MONTH HIGHS DUE TO US OPTIMISM
GBP/USD TRADES LOWER AROUND 1.3300, RETREATS FROM SEVEN-MONTH HIGHS DUE TO US OPTIMISM
The GBP/USD currency pair has experienced a decline, trading around 1.3300 during Wednesday's Asian session.
This retreat follows a seven-month high of 1.3424 recorded in the previous session.
The pullback is attributed to a shift in investor sentiment favoring the US Dollar, driven by renewed optimism in the US economy.
US Dollar Strengthens Amid Optimistic Economic Outlook
Investor appetite has shifted back toward US assets, including the US Dollar, buoyed by a more optimistic tone from US President Donald Trump.
This renewed confidence in the US economy has led to increased demand for the Greenback.
The GBP/USD pair, which reached a seven-month high of 1.3424 in the previous session, has retreated to around 1.3300.
This pullback indicates a temporary shift in market dynamics, with the pair facing resistance at higher levels.
Optimism surrounding a potential US-China trade deal has contributed to a positive risk sentiment, favoring the US Dollar.
This development has led investors to reallocate their portfolios, impacting the GBP/USD exchange rate.
Traders are monitoring key support levels for the GBP/USD pair.
A sustained move below 1.3300 could indicate further downside potential, with the next support levels to watch being 1.3250 and 1.3200. Resistance remains around 1.3400 and 1.3450.
