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  • GBP/USD is mildly gaining on the day.
  • Declining Covid cases and dismal US data keep the Pound upbeat.
  • British Pound found support amid suspension of NI case by the EU.
  • BOE meeting on Thursday is under watch to attain directional bias.

The GBP/USD outlook is neutral despite some gains. Tuesday’s Asian trading session saw GBP/USD rise. In the previous session, the pair reached a high of around 1.3935 but failed to sustain the surge.

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The GBP/USD exchange rate is currently 1.3909, up 0.21% for the day.

A key indicator of the Dollar’s competitiveness, the US Dollar Index (DXY) trades above 92.00 in the Asia-Pacific region. While investors drop riskier assets, the Dollar is rising as Delta variant spreads rapidly.

Personal consumer expenditure (PCE) in the United States rose 0.4% in June, below market expectations of 0.6%.

The House of Representatives has tabled an infrastructure bill worth $ 550 billion. In addition, the Fed’s chairman, Christopher Waller, said as recently as Monday that he would support the early withdrawal from the bond market in October. Even though economic data were weaker, the Dollar rose after the comments.

The ISM manufacturing PMI fell to 59.5 in July, below market expectations.

A fall in new infections of COVID-19 led to a decrease in coronavirus fears, which boosted the Pound.

A week earlier, the EU had suspended its Northern Ireland (NI) case against Great Britain, which was another positive development for the Pound.

The Monetary Policy Committee (MPC) of the Bank of England (BOE) is expected to review inflation and interest rate forecasts on Thursday.

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Currently, investors are looking for US manufacturing orders to rejuvenate the trade.

GBP/USD technical outlook: Bullish crossover in making

The 4-hour chart shows an interesting scenario. The price has been lying below the 20-period SMA since Friday. Meanwhile, the 200 and 50 SMAs on the same chart are going to make a bullish crossover. However, the down bar posted on Friday is quite strong with a high bearish volume which keeps pressing the Pound at the moment. The recent volume is quite low, which is not at all encouraging for the buyers. Therefore, the stance, for now, is more neutral.

GBP/USD 4-hour chart outlook
GBP/USD 4-hour chart outlook

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