1.3450: Pound bulls unable to extend gains above this level | GBP/USD price forecast

1.3450 caps GBP/USD as the pair surrenders some gains on Tuesday.
A potential 50-basis-point December rate hike flagged by the Fed's Waller gave the US Dollar a modest lift.
The technical outlook remains constructive, preserving the uptrend from the mid-October lows.

1.3420 has so far held against GBP/USD declines. The British Pound (GBP) is giving back some gains on Tuesday as hawkish remarks earlier in the day from Federal Reserve (Fed) Governor Christopher Waller support the US Dollar (USD). The pair nevertheless retains most of Monday's advance.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

A possible December rate increase of 50 basis points, should consumer inflation stay elevated, was signalled by Waller earlier on Tuesday. His remarks lent the US Dollar some support.

Due in a few minutes, preliminary US Consumer Price Index data for October will exclude year-on-year figures because of the 2025 Federal Government shutdown. That omission removes a key input for assessing the central bank's next monetary policy decisions, so the effect on US Dollar crosses is likely to be limited.

Technical Analysis: Bullish Trend Holds as Momentum Eases

At 1.3424, GBP/USD retains its constructive structure, although the near-term bias has shifted to neutral. On the four-hour chart, the Relative Strength Index (RSI) is retreating towards its 50 midline, while the Moving Average Convergence Divergence (MACD) remains marginally positive.

Tuesday's advance has stalled a few pips above 1.3450. This leaves the route to last week's highs around 1.3500 blocked, ahead of a stronger resistance zone around 1.3570. There, the September peak meets the upper boundary of the rising channel drawn from the mid-October lows.

Initial downside support lies at the channel's lower boundary, currently around 1.3360, followed by the 6 November low near 1.3340. A breach of that zone would invalidate the bullish outlook, opening a path to the late October low near 1.3270 and the year-to-date (YTD) lows around 1.3140.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

US Dollar: Today's Currency Performance

Against the major currencies listed below, the US Dollar (USD) recorded its strongest performance versus the Australian Dollar today. The table sets out the corresponding percentage changes.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.06%	0.13%	0.17%	0.08%	0.31%	0.05%	0.15%
EUR	-0.06%		0.06%	0.11%	0.03%	0.24%	-0.01%	0.08%
GBP	-0.13%	-0.06%		0.04%	-0.04%	0.17%	-0.09%	0.02%
JPY	-0.17%	-0.11%	-0.04%		-0.09%	0.13%	-0.13%	-0.03%
CAD	-0.08%	-0.03%	0.04%	0.09%		0.22%	-0.05%	0.05%
AUD	-0.31%	-0.24%	-0.17%	-0.13%	-0.22%		-0.26%	-0.17%
NZD	-0.05%	0.00%	0.09%	0.13%	0.05%	0.26%		0.10%
CHF	-0.15%	-0.08%	-0.02%	0.03%	-0.05%	0.17%	-0.10%

To read the heat map of percentage changes between major currencies, select the base currency in the left-hand column and the quote currency in the top row. For instance, choosing the US Dollar on the left and following that row across to the Japanese Yen gives the percentage change for USD (base)/JPY (quote) in the intersecting cell.