Jakarta, GIC Trade – The GBP/USD currency pair continued its rise on Tuesday due to dismal U.S. Treasury yields.
 
Meanwhile, China's fiscal stimulus sparked cautious optimism and weakened the Greenback. Investors are awaiting the release of U.S. data for fresh insights into the economic outlook.
 
GBP/USD strengthened for the second consecutive day, trading around 1.2620 during the Asian session on Tuesday. This cautious optimism weakened U.S. government bond yields, contributing to the upward movement of the GBP/USD pair.
 
Additionally, hawkish statements made by Bank of England (BoE) Deputy Governor Ben Broadbent at the Jackson Hole Symposium helped the Cable stop its four-day decline. Broadbent advocated for keeping policy interest rates higher for an extended period.
 
The U.S. Dollar Index (DXY), which measures the Greenback's performance against six major currencies, continued to decline and traded around 103.90. Recent fiscal measures introduced by China to attract investors back to its struggling stock market contributed to the optimistic risk sentiment, weakening the safe-haven U.S. Dollar (USD).
 
Investors are waiting for the upcoming U.S. data releases, seeking new insights into the country's economic prospects. This data set includes Job Openings (JOLTS), the Housing Price Index, and Consumer Confidence, all of which will be revealed today.
 
The release of this data is expected to provide valuable perspectives on the trajectory of the U.S. economy, potentially impacting trading strategies related to the GBP/USD pair.
 
Fundamentally, risk sentiment supports rising stocks and pressures the dollar to 103.90, driving the GBP/USD currency pair higher. Now, let’s look at the technical analysis:
 
Technical Analysis



The GBP/USD pair attempted to move lower on the 1-hour chart, touching the support level at 1.25860 before heading toward the next support level at 1.25630. A downward trend is also evident from the FXBot template, where the GBP is lower by 2.8 compared to the USD at 7.4. Meanwhile, the bearish bias is also supported by the sell signal indicated by the red arrow.
 
This Forex analysis is based on both fundamental and technical perspectives used by the author and is not intended as advice or solicitation. For more information, click the image below.