GBPUSD Daily Forecast GBP/USD is now declining by 0.1% as it approaches the 1.3500 mark during the European session. The selling pressure came into play because of the strengthening of the USD. Market players anticipate that the Fed may implement a 25-basis-point rate increase at its July policy meeting. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback's performance against a basket of six major global currencies, trades 0.13% higher, approaching 99.78 levels. According to CME FedWatch, there is a 67% probability that the Fed will raise rates at its upcoming July policy meeting. Regarding the British Pound, MPC member Catherine Mann from the Bank of England supports an earlier interest rate increase due to the threat of persistently high inflation. Indeed, "The evidence is pretty definitive on this one, too. Better to have interest rates a little too high and adjust them accordingly later when necessary." BoE's Mann said in an interview on Tuesday. Additionally, "That is what informs my position regarding the need for a 25 basis point increase at the last policy meeting," according to Reuters. As I can see on the daily timeframe. The GBP/USD pair has been trading at 1.3500. The pair is exhibiting a weak bearish trend as it remains below the 20-day EMA at 1.3537. The RSI indicator near 48 is gradually shifting towards the neutral zone, suggesting that bullish momentum is losing strength rather than entering oversold territory. The immediate support is located around the lower boundary of the rising channel pattern at 1.3418, where buyers can seek refuge to build their defense lines. If the sellers remain strong, the next bearish wave would extend to target 1.3282. But before that move, sellers need to surpass the SMA convergence of the 100-, 200-, and 50-day SMAs, which range zone from 1.3472 to 1.3424. From the buyers' perspective, resistance appears near the 20-day EMA at 1.3537. The bulls face significant resistance. To continue potential buying pressure, bulls must push beyond the 20-day EMA at the 1.3537 resistance level. If buyers breach the initial barrier at 1.3537, fresh buying pressure could extend the bullish wave to the previous higher high at around 1.3666. The 1.3666 is located at the corner of the strong rising wedge trendline. If buyers succeed in piercing this resistance roof, the trend will shift in buyers' favor, with the next bull target at 1.3812, followed by 1.3864.
