GBP/USD Forecast: Limited Upward Potential
The British Pound benefited from dollar's broad weakness, with the GBP/USD pair recovering up to 1.3086, a couple of pips below the weekly high set on Monday at 1.3090. BOE's Governor is scheduled to speak late in the US afternoon, although he will deliver a presentation titled "Arthur Burns memorial lecture," in Berlin, which seems hardly linked to economic policies. Anyway, and with no relevant data in the UK so far this week, the GBP remains among the weakest currencies of the FX board.
Holding near the mentioned highs, the 4 hours chart presents a moderate bullish tone, given that the price is above its 20 SMA, although technical indicators present a limited upward momentum within positive territory, mostly indicating that the pair lacks enough strength to continue advancing. Nevertheless, an upward acceleration through the mentioned 1.3090 level, could see the price extending up to 1.3130, while further gains beyond this last can see the pair reaching the 1.3160/70 region.
The immediate short term support stands around 1.3035, with a break below it probably seeing the price falling down to the 1.2980 region.