Daily Price Outlook

Despite the US dollar's strong performance and concerns surrounding a property crisis in China, the AUD/USD currency pair managed to bounce back from near the 0.6400 level during the European session on Tuesday. It has reached a fresh daily high, trading around 0.6425, with a modest 0.10% gain for the day.

AUD/USD pair has remained within a familiar trading range for about two weeks. However, the US dollar's bullish trend, driven by the Federal Reserve's hawkish outlook, is limiting the pair's gains, while worries about the property crisis in China are holding back Australian dollar bulls from making fresh investments.

The US Dollar's Strength and Challenges for AUD/USD

The broad-based US dollar has been gaining momentum, hitting its highest level since December 2022. Although, the recent pause in its upward trend is offering some temporary relief to the AUD/USD currency pair. However, the overall strength of the US dollar is mainly due to the Federal Reserve's hawkish stance. Furthermore, the ongoing concerns about a property crisis in China are weighing down the Australian dollar and contributing to the AUD/USD pair losses.

Federal Reserve's Hawkish Stance and its Impact on AUD/USD

It is worth noting that Federal Reserve has maintained a hawkish stance, highlighting its commitment to keeping interest rates higher for an extended period. It anticipates at least one more rate hike this year, backed by influential FOMC members who stress the importance of higher borrowing costs in controlling inflation and reaching the 2% target.

Furthermore, the Fed is considering only two interest rate cuts in 2024, down from the previously projected four cuts. This policy shift is also pushing up yields on US Treasury bonds. Hence, these factors contribute to the continued strength of the US dollar and create challenges for the AUD/USD pair in achieving a significant recovery.

Looking forward, traders are anticipating upcoming US economic data releases, including the Consumer Confidence Index, New Home Sales, and the Richmond Manufacturing Index, which could provide fresh direction for currency pair.

AUD/USD - Technical Analysis

The AUD/USD currency pair currently hovers around the crucial 0.6400 support level, consistently maintaining above this threshold. Notably, the stochastic indicates pronounced positive momentum, enhancing the likelihood of a continued upward trajectory aiming for our primary anticipated target of 0.6545.

Given this backdrop, we remain optimistic about a bullish trend in the near future. However, it's imperative to note that any breach below the 0.6400 mark could curtail the anticipated ascent, pivoting the currency pair into a decline.

Today's forecasted trading range is anchored between support at 0.6380 and resistance at 0.6480.

Daily Price Outlook

Gold price (XAU/USD) failed to stop its losing streak and declined to $1,910 per troy ounce in the early European session on Tuesday. However, the reason for its downward rally could be linked to the ongoing strength of the US Dollar and rising US Treasury yields. Meanwhile, the Federal Reserve's more hawkish stance was seen as another key factor that has been putting downward pressure on Gold prices.

Fed's Inflation Concerns and Strong US Dollar Impacting Gold

It is worth noting that the Federal Reserve recently warned that inflation in the United States is still a concern. This means they might increase interest rates one more time by the end of the year. Furthermore, most Fed officials now expect only two interest rate cuts in 2024, down from the previous estimate of four. Hence, this news, along with strong economic data in the US, suggests that the Fed could make borrowing money more expensive.

Furthermore, Minneapolis Fed President Neel Kashkari even suggested that they might need to keep interest rates high for a while to control inflation. This "hawkish" stance is making the US dollar stronger and causing the price of gold to drop.

The broad-based US dollar has gained significant strength in recent times, with the US Dollar Index (DXY) now hovering near 106.00. This marks its highest level since November. In the meantime, the yield on the 10-year US Treasury note has surged to 4.55%, a level not witnessed since October 2007.

Investors seems worried that higher interest rates could damage the economy by making it more expensive to borrow money. Apart from these worries, the concerns about a housing crisis in China are contributing to instability in the stock markets. Interestingly, this instability was seen as one of the key factor that kept the lid on any additional losses in the gold price.

Government Shutdown Concerns and Gold's Safe-Haven Appeal

US President Joe Biden and one of his top advisers are worried about a possible government shutdown if the federal government can't agree on its budget. This could cut food help for 7 million low-income women and kids. Biden and House Speaker Kevin McCarthy talked about government spending, but the Republican-led House wants cuts. The uncertainty of a shutdown might make people turn to safe assets like gold, which could help prevent a big drop in its price.

Looking forward, investors will closely monitor key economic data like US Consumer Confidence, Durable Goods Orders, Jobless Claims, and the Core PCE Price Index. These releases will offer insights into inflation trends and may affect the Federal Reserve's policies, potentially influencing Gold prices.

GOLD(XAU/USD) - Technical Analysis

The gold price exhibited a discernible downward trajectory yesterday, closely approaching the pivotal support level at $1913.15. Influenced by the negative pressure from the EMA50, there are emerging indications suggesting potential further depreciation should it breach this support.

Given the uncertainty, a wait-and-see approach is recommended until there's a clearer stance regarding the $1913.15 benchmark. A breach could intensify the bearish momentum, potentially steering the price towards targets of $1890.00 and subsequently, $1875.00. Conversely, if it sustains above this level, a resurgence targeting $1945.20 in the short term might be anticipated.

For today, the expected trading range is between support at $1900.00 and resistance at $1930.00.

Daily Price Outlook

During the early European session on Tuesday, the USD/JPY currency pair has been gaining traction and is trading near 148.90, which is close to an 11-month high. However, the reason for its surge can be attributed to the strengthening of the US Dollar, driven by cautious market sentiment and higher US Treasury yields.

Investors are considering the Federal Reserve's hawkish stance on the trajectory of interest rates, and this is factored into their trading decisions. Hence, the anticipation of higher interest rates in the US is bolstering the USD/JPY pair.

USD/JPY Currency Pair Poised for Strength Amid Surging US Dollar and High Yields

The broad-based US dollar, as represented by the US Dollar Index (DXY), has been surging above 106.00, hitting its highest point since November. However, this uptrend was mainly driven by the strong performance of US Treasury yields. Specifically, the yield on the 10-year US bond note has reached 4.56%, a level not seen since October 2007. This increase reflects the expectation of sustained high interest rates, underpinned by the resilience of the US economy.

In the meantime, the US Federal Reserve has signaled its readiness to implement further interest rate hikes if necessary, bolstering the dollar's strength more. Hence, this action is likely to favor a bullish outlook for the USD/JPY currency pair.

Challenges for Japanese Yen (JPY) Amid BoJ Policy and Economic Choices

On the flip side, the Japanese Yen (JPY) is facing challenges as the Bank of Japan (BoJ) sticks with its super-low monetary policy to help the economy reach a 2% inflation goal. This suggests the central bank is not rushing to reduce its massive stimulus efforts. Japanese Finance Minister Shunichi Suzuki recently discussed Japan's economic situation, highlighting a crucial choice between boosting consumption or encouraging wage growth.

Yoshitaka Shindo, Japan's new Economy Minister, stressed that it's not easy to foresee whether just spending more money by the government will make prices go up. He also highlighted that it's crucial for the currency to move steadily in line with the country's economic basics. Furthermore, Bank of Japan (BoJ) officials underscored that they're willing to wait and keep using strategies like making more money available, which could make the Yen less strong and benefit the USD/JPY pair.

USD/JPY - Technical Analysis

The USD/JPY currency pair is persistently advancing, currently nearing our anticipated target of 149.00. We foresee this bullish momentum extending beyond this level, potentially aiming for the significant milestone at 150.00.

Underpinned by the EMA50's support, our bullish outlook remains intact for the foreseeable future. It's essential to emphasize that sustaining this upward trajectory necessitates the pair remaining above the 147.90 mark.

Today's projected trading boundaries lie between a support at 148.30 and a resistance at 149.80, with an overall bullish sentiment prevailing.

Daily Price Outlook

The GBP/USD currency pair failed to stop its bearish rally and faced further downward trend due to concerns over the UK's weak economy and rising inflation risks. It is worth noting that the Bank of England unexpectedly paused its plan to increase interest rates, hinting at possible economic slowdown. On the other hand, the US Dollar gained strength as the Federal Reserve hinted at more rate hikes. This made the Pound weaker against the Dollar. Federal Reserve Bank officials highlighted the need for more rate hikes despite a cooling inflation. This added pressure on the GBP/USD pair, making it challenging for the Pound to gain ground against the Dollar.

UK Economic Weakness and GBP/USD Decline

It is worth mentioning that the UK economy is getting weaker and the reason could be attributed to the uncertainty about interest rates and upcoming elections. However, the UK Prime Minister, Rishi Sunak, promised to lower inflation to 5.3% by the end of the year, but the Bank of England's recent decision to pause increasing interest rate suggests they might struggle to keep that promise.

Furthermore, the higher interest rates have hit the UK's economic activities, causing a decline in manufacturing and services PMI. Services PMI has dropped below the critical 50.0 mark for the second consecutive time, indicating a struggle for the service sector.

These factors are concerning for the UK's economic strength. Therefore, the GBP/USD currency pair faced a decline as uncertainty about interest rates and weak economic indicators in the UK persisted.

Strong US Dollar Impacts GBP/USD Pair

Another factor affecting the GBP/USD pair is the strong US dollar. This is mainly because the US Federal Reserve has taken a tough stance on raising interest rates to control inflation. They want to keep interest rates high for a longer time to control inflation and have even hinted at raising rates again by the end of the year. This has made investors more interested in US bonds, pushing their yields to levels not seen since 2007. Plus, with global uncertainty, the US dollar is seen as a safe choice. Consequently, these factors have exerted pressure on the GBP/USD pair, resulting in the US Dollar gaining strength against the British Pound (GBP).

GBP/USD - Technical Analysis

The GBP/USD pair exhibits an intensified bearish momentum, methodically nearing our anticipated target of 1.2200. We anticipate this downward trajectory to persist, with subsequent objectives set around the 1.2135 mark.

The EMA50 consistently underpins the projected bearish trend, which unfolds systematically within the bearish channel depicted on the chart. It's imperative to note that surpassing 1.2310 would negate this bearish outlook, prompting the pair to undergo an intraday bullish realignment.

For today, the projected trading parameters are established between a support at 1.2150 and a resistance at 1.2300.

Daily Price Outlook

During the early European session on Monday, the price of gold (XAU/USD) failed to maintain its upward rally and dipped to $1,920 level. However, this drop was mainly influenced by the strength of the US dollar against other currencies. Notably, the broad-based US dollar has been rising for ten weeks and is now around 105.55, close to its highest level since March 2023. However, the increase in the US dollar's value is mainly due to expectations of higher interest rates in the US. It is worth mentioning that the rising interest rates make non-yielding assets like gold less attractive to investors, resulting in a negative outlook for XAU/USD.

US Economic Concerns Amidst Rate Hikes and Inflation

The latest Purchasing Managers Index (PMI) report, released last Friday, raised concerns about the demand in the US economy. These worries follow a series of interest rate hikes and a rise in inflation. According to the latest data, the S&P Global Manufacturing PMI for the US showed a slight improvement, rising from 47.9 in August to 48.9 in September, suggesting a continued contraction in the manufacturing sector. In the meantime, the Services PMI dipped slightly from 50.5 to 50.2, and the Composite PMI also declined marginally from 50.2 to 50.1 in August.

During the latest Federal Open Market Committee (FOMC) meeting, it was decided to maintain interest rates within the range of 5.25% to 5.50%. However, notable discussions during the meeting indicated that the majority of members predict upcoming rate hikes later in the year. Susan Collins and Mary Daly, who preside over the Federal Reserve Banks of Boston and San Francisco, highlighted in their remarks that while inflation seems to be moderating, they believe that additional rate hikes will remain necessary to ensure economic stability and address any lingering concerns.

Therefore, The possibility of upcoming rate hikes by the FOMC may lead to downward pressure on gold prices as higher rates can make non-interest-bearing assets like gold less attractive to investors.

Upcoming US Economic Indicators: Impact on XAU/USD and Gold Prices

Looking forward, traders are closely watching US economic indicators. The Q2 GDP Annualized release on Thursday and the Core PCE Price Index on Friday, expected to dip from 4.2% to 3.9%, will influence XAU/USD dynamics.

GOLD(XAU/USD) - Technical Analysis

The gold price has encountered resistance at the $1929 mark, exhibiting a minor bearish inclination. This trend is influenced by the stochastic indicator, which is gradually shedding its negative momentum. The market awaits a positive catalyst that could propel the price beyond the aforementioned level, aiming for a subsequent target at $1945.20.

For the time being, our outlook remains optimistic unless there's a breach below the $1913.15 threshold and sustained trading beneath it. Penetrating this level could be detrimental, potentially leading the price to further declines targeting $1875.00 in the near term.

Today's anticipated trading bracket is set between a support at $1910.00 and a resistance at $1940.00.

Daily Price Outlook

During the early European session, the EUR/USD pair struggled to gain momentum and remained stuck in a narrow trading range around the mid-1.0600s. However, the reason for its decline can be attributed to the Federal Reserve's hawkish outlook, which is boosting the US Dollar and limiting the Euro's gains. Besides this, the ongoing concerns about a looming recession and the European Central Bank's dovish approach to interest rate hikes were adding downward pressure on the EUR/USD pair.

Strong US Dollar and Its Impact on EUR/USD Pair

The broad-based US dollar maintained its upward ground and hitting a six-month high due to the Federal Reserve's hawkish stance. it is worth noting that the Fed recently confirmed that it plans to keep interest rates high for an extended period and expects to raise rates again by the end of the year to tackle persistent inflation. Furthermore, the Fed's projection of two rate cuts in 2024, down from the previous estimate of four, supports higher US Treasury bond yields. Notably, the two-year US government bond yield is at its highest level since 2006, and the 10-year Treasury yield is near a 16-year peak.

These factors, along with concerns about a property market crisis in China, bolster the safe-haven US Dollar and contribute to the EUR/USD pair losses.

ECB's Cautious Stance and Its Impact on EUR/USD Pair

Another factor that has been impacting the EUR/USD pair is the European Central Bank's (ECB) cautious stance on interest rates, which is pulling down the shared currency. Last Thursday, the ECB made a dovish rate decision, which has put pressure on the Euro and prevented the pair from recovering from a multi-month low. Meanwhile, ECB lowered its forecasts for inflation (CPI) and economic growth (GDP) in 2024 and 2025.

Moreover, the Eurozone's Purchasing Managers' Index (PMI) released on Friday showed that the manufacturing sector is still struggling, which raises concerns about the possibility of an economic downturn in the second half of the year. Therefore, these developments strengthen the belief that further interest rate hikes are unlikely, which weighed on EUR/USD currency pair.

EUR/USD - Technical Analysis 

The EUR/USD pair is currently hovering around the pivotal support level of 1.0635. We anticipate a breach of this level to validate the continuation of its bearish trajectory, with an ensuing target at 1.0515.

The Stochastic oscillator is generating bearish indications, enhancing the likelihood of the anticipated decline. This is further reinforced by the downward pressure exerted by the EMA50.

However, a surge beyond 1.0680 would negate this bearish perspective and might prompt the pair to undertake recovery efforts, aiming for the 1.0785 region before any subsequent downturn. Today's projected trading range is delineated between the support at 1.0560 and the resistance at 1.0700. (edited)

Daily Price Outlook

The global market is currently showing mixed sentiment with a hint of caution. Asian markets, in particular, are displaying this mixed sentiment with a slightly negative bias. This caution is primarily due to concerns about the US Federal Reserve's recent hawkish stance on interest rate increases. Investors are carefully watching how this might affect the overall trajectory of interest rates, which is contributing to the uncertainty and mixed feelings in the markets.

Market Sentiment Impacted by Federal Reserve's Hawkish Stance and Strong USD

It's important to note that the broad-based US Dollar remains strong due to the Federal Reserve's hawkish stance. They have maintained high interest rates, hinting at a potential hike this year and fewer rate cuts in 2024. This has pushed US Treasury bond yields, affecting the market sentiment. Also, an unexpected drop in US weekly jobless claims added to the momentum. However, the Fed's plan to maintain higher rates for an extended duration raises worries regarding its potential impact on the economy.

The news has underminned market sentiment, as investors are concerned about the economic effects of the Federal Reserve's commitment to keeping interest rates high for an extended period.

Global Market Snapshot and Potential Impact on S&P 500

China's SSE Composite Index is up by 0.68% to 3,105, and Shenzhen Component Index has risen by 1.02% to 10,083. Hong Kong's Hang Seng Index is at 17,846, showing an increase. However, Tokyo's Nikkei 225 is down by 0.42% at 32,433, and South Korea's Kospi is down by 0.30%. Taiwan's Weighted Index has improved by 0.21%.

In Australia, the ASX 200 is down by 0.14% due to low commodity prices affecting the mining sector. Japan's Nikkei 225 index initially dropped after the Bank of Japan's decision to maintain its dovish monetary policy, disappointing investors anticipating hawkish signals.

In India, the Nifty 50 index has advanced to 19,761, showing a gain of 0.10%. However, caution persists due to rising tensions in the diplomatic dispute between India and Canada, linked to allegations surrounding a Sikh secessionist leader's killing.

Hence, the positive trends in China's and Hong Kong's markets may bolster global sentiment, potentially impacting the S&P 500 positively. Conversely, Japan and South Korea's downturns, along with caution in India, might introduce a hint of uncertainty.

GOLD(XAU/USD) - Technical Analysis

Following a significant downturn, the price of gold narrowly missed our anticipated target at $1,913.15 yesterday. However, a subsequent robust rebound was observed, indicating the initiation of a potential bullish trajectory. Our primary projection for this upward momentum is a retest of the $1,929.00 level. A breach of this threshold could further elevate the price to our next major target of $1,945.20.

Given the current data, we anticipate a bullish trend for today, a sentiment reinforced by the present positivity of the stochastic indicator. It's crucial to note that any decline below the $1,913.15 mark would nullify the projected ascent and potentially usher in more immediate losses. For today, we forecast a trading range with support at $1,910.00 and resistance at $1,940.00.

Daily Price Outlook

The global market is currently showing mixed sentiment with a hint of caution. Asian markets, in particular, are displaying this mixed sentiment with a slightly negative bias. This caution is primarily due to concerns about the US Federal Reserve's recent hawkish stance on interest rate increases. Investors are carefully watching how this might affect the overall trajectory of interest rates, which is contributing to the uncertainty and mixed feelings in the markets.

Market Sentiment Impacted by Federal Reserve's Hawkish Stance and Strong USD

It's important to note that the broad-based US Dollar remains strong due to the Federal Reserve's hawkish stance. They have maintained high interest rates, hinting at a potential hike this year and fewer rate cuts in 2024. This has pushed US Treasury bond yields, affecting the market sentiment. Also, an unexpected drop in US weekly jobless claims added to the momentum. However, the Fed's plan to maintain higher rates for an extended duration raises worries regarding its potential impact on the economy.

The news has underminned market sentiment, as investors are concerned about the economic effects of the Federal Reserve's commitment to keeping interest rates high for an extended period.

Global Market Snapshot and Potential Impact on S&P 500

China's SSE Composite Index is up by 0.68% to 3,105, and Shenzhen Component Index has risen by 1.02% to 10,083. Hong Kong's Hang Seng Index is at 17,846, showing an increase. However, Tokyo's Nikkei 225 is down by 0.42% at 32,433, and South Korea's Kospi is down by 0.30%. Taiwan's Weighted Index has improved by 0.21%.

In Australia, the ASX 200 is down by 0.14% due to low commodity prices affecting the mining sector. Japan's Nikkei 225 index initially dropped after the Bank of Japan's decision to maintain its dovish monetary policy, disappointing investors anticipating hawkish signals.

In India, the Nifty 50 index has advanced to 19,761, showing a gain of 0.10%. However, caution persists due to rising tensions in the diplomatic dispute between India and Canada, linked to allegations surrounding a Sikh secessionist leader's killing.

Hence, the positive trends in China's and Hong Kong's markets may bolster global sentiment, potentially impacting the S&P 500 positively. Conversely, Japan and South Korea's downturns, along with caution in India, might introduce a hint of uncertainty.

S&P500 (SPX) - Technical Analysis

The prominent stock market index, the S&P 500, is displaying a pronounced bearish trend, declining by nearly 3% to stand at $4,336. This level serves as a pivotal support, underscored by a double bottom pattern at the same mark.

On the daily chart, the SPX has manifested two significant bearish engulfing candles, indicating a dominant bearish sentiment. Should the SPX breach the $4,336 threshold, it is poised to encounter subsequent support levels at $4,295 and possibly $4,261.

Conversely, the resistance is anchored at $4,377. A surge above this level could pave the way for the SPX to approach $4,440.

Daily Price Outlook

During the European trading session, the GBP/USD currency pair has failed to stop its downward rally, experiencing a 0.35% decline, placing it at 1.2250. Despite a minor bounce from the 1.2230 region, near a six-month low, the pair struggles to gain momentum. But, the persistent bearish trend suggests potential challenges for the pound against the US dollar in the near term.

Fed's Hawkish Stance and US Dollar Impact on GBP/USD

The broad-based US dollar remains near its highest level since June, propelled by the Federal Reserve's hawkish stance. However, this dollar's strength was seen as a challenging factor for the GBP/USD currency pair. However, the Fed opted to maintain rates at a 22-year peak, between 5.25% and 5.50%, as anticipated. Furthermore, they hinted at a potential rate hike by year-end due to persistent inflation.

It is worth mentioning that the Fed's 'dot-plot' indicates a benchmark rate of 5.1% next year, signaling fewer rate cuts in 2024 than previously projected. Rising US Treasury bond yields raise economic concerns, reducing appetite for riskier assets and impacting GBP/USD.

Surprise BoE Decision Adds Pressure on British Pound

Aside from that, the British Pound faced more pressure after the surprise decision by the Bank of England (BoE) to keep the benchmark interest rate steady at 5.25%. The BoE chose to keep the benchmark interest rate unchanged at 5.25%, contrary to expectations of a 0.25% increase to 5.50%. This surprising move came as inflation slowed, the UK labor market cooled, and concerns of a looming recession emerged. It marked the first time since December 2021 that the BoE didn't raise rates and even revised down its growth forecast for July-September to just 0.1% from the previous 0.4%. This unexpected pause weighed on the Pound and contributed to the GBP/USD pair losses.

GBP/USD - Technical Analysis

Yesterday, the GBP/USD pair exhibited a pronounced bearish behavior, reaching our extended target of 1.2255. Subsequently, it attempted a retest of the resistance at 1.2310, which it had previously breached. Notably, the stochastic indicator has displayed a diminishing bullish momentum, suggesting a potential push for the price to continue its primary bearish course with an upcoming target set at 1.2200.

Given this context, we anticipate a continuation of the bearish trajectory for the foreseeable future, contingent on the price remaining below 1.2310. It's essential to highlight that the EMA50 continues to bolster the current bearish trend within the discernible bearish channel on the chart. Today's anticipated trading range spans from a support level at 1.2190 to a resistance level at 1.2350.

Daily Price Outlook

The GBP/USD currency pair has struggled to break its downward momentum, continuing its descent below the crucial 1.2300 support level. This decline has persisted for two consecutive days and currently stands at its lowest point since early June. However, the main reason for this decline is the strength of the US Dollar. Following the Federal Reserve's recent FOMC meeting, the US Dollar staged an impressive rebound and is now approaching a six-month high. This resurgence in the US Dollar's value is exerting substantial pressure on the GBP/USD pair. In simpler terms, the robust US Dollar is causing the British Pound (GBP) to weaken within this currency pair.

Notably, the Federal Reserve's more hawkish stance is contributing to the USD's strength, and there are also expectations of the Bank of England (BoE) pausing its interest rate hikes, which adds to the downward pressure.

Fed's Interest Rate Decision and USD Outlook

As expected, the Federal Reserve decided to keep interest rates unchanged. However, they still have plans for rates to reach between 5.5% and 5.75% this year, with the possibility of one more 0.25% increase in 2023. They've also adjusted their outlook for next year, now anticipating a rate of 5.1%, which is a change from their previous projection of four rate cuts in 2024 to just two. Hence, the "higher-for-longer" approach, keeping US Treasury bond yields elevated, is boosting the appeal of the US Dollar as a safe-haven currency. Alongside cautious market sentiment, this is diminishing interest in riskier assets.

Market Factors and Outlook: GBP/USD Dynamics

Furthermore, the British Pound is facing pressure due to expectations of the Bank of England (BoE) pausing its interest rate hikes. As a result, this is pushing down the value of the GBP/USD pair. Another factor putting pressure on the GBP/USD currency pair is the unexpected drop in the UK's annual inflation rate (CPI) from 6.8% in July to 6.7% in August, defying expectations of a rise to 7%. This decline also affected the core CPI, which excludes volatile items, dropping from 6.9% in July to 6.2% in August. These figures align with concerns of a potential economic recession and signs of a cooling job market in the UK, reinforcing market expectations. As a result, all eyes are on the Bank of England's upcoming interest rate decision, scheduled for later this week.

Looking forward, traders will be watching important US economic data like Initial Weekly Jobless Claims, the Philly Fed Manufacturing Index, and Existing Home Sales. These, along with US bond yields and overall market sentiment, could affect the value of the US Dollar and potentially impact the GBP/USD pair.

GBP/USD - Technical Analysis

The GBP/USD pair has successfully met our primary anticipated target at 1.2310 and is exhibiting a negative bias around this level. This enhances the probability of persisting bearish momentum, potentially descending further to targets of 1.2255 and subsequently 1.2200.

The prevalent bearish channel orchestrates the anticipated downtrend, receiving consistent reinforcement from the EMA50. It's crucial to note that any inability to breach the 1.2310 level may instigate a price rebound, giving rise to a short-term bullish trend aiming to test the 1.2435 regions. For today's trading, we anticipate boundaries ranging from a support at 1.2210 to a resistance at 1.2370.