Daily Price Outlook

The global market sentiment failed to prolong its upward momentum and turned sluggish, fading the cautious optimism that started the week. People are now eagerly awaiting second-tier economic data from both China and the US, which is scheduled for release on Tuesday. This uncertainty comes as major central bankers send mixed signals. Additionally, there is a lack of significant data or events on the horizon until the US inflation report is published on Thursday.

It is worth noting that the S&P500 Futures, which represent how investors feel about the stock market, show slight losses around 4,530. This is a retreat from Friday's monthly low after a small gain on Monday. Meanwhile, the yields on US Treasury bonds, both the 10-year and two-year bonds, are under pressure, hovering around 4.06% and 4.76%, respectively. It's worth noting that Wall Street managed to break its five-day streak of losses on Monday, ending the day with a modest gain.

Market Dynamics: USD Strength, Gold and Oil Weakness, Mixed Central Bank Signals

The US Dollar Index (DXY) has climbed above 102.00, while Gold and Crude Oil prices are showing weakness, both down by 0.20% and 0.50% respectively. However, the uncertainty has been fueled by mixed statements from important central banks like the Federal Reserve (Fed), Bank of England (BoE), Bank of Japan (BoJ), and European Central Bank (ECB).

Fed Governor Michelle Bowman has indicated that more interest rate hikes might be necessary to manage inflation. On the flip side, New York Fed President John C. Williams has suggested that interest rates could decrease next year. Williams has also expressed a desire for a slightly higher unemployment rate as the economy cools down.

European Central Bank and Global Central Bank Insights Impacting Markets

Furthermore, the European Central Bank (ECB) has been in the spotlight due to discussions about high interest rates, sparked by Fitch Ratings, a global rating agency. This caused a dip in the Euro's value, as Fitch mentioned that the possibility of low inflation could lead to a pause in the ECB's rate increases. The ECB itself also noted that the period of highest underlying inflation likely occurred in the first half of 2023.

Meanwhile, Huw Pill, the Chief Economist of the Bank of England, outlined two potential risks for inflation in the United Kingdom. All of these recent events and statements are actively shaping the current financial landscape.

Upcoming Trade Figures and CPI Data: Market Impact Anticipated

Looking ahead, the focus will be on trade data from both China and the US today. However, the China Consumer Price Index (CPI) on Wednesday and the US CPI on Thursday will be crucial for traders seeking clear direction. These events will likely have a major impact on the markets.

S&P500 (SPX) - Technical Analysis

Examining the technical aspect of the S&P 500, its current trading stance centers around the 4475 support threshold. This support is further fortified by the 61.8% Fibonacci retracement level. However, it's important to acknowledge that both the relative strength index (RSI) and the moving average convergence and divergence (MACD) indicator are signaling bearish conditions, implying a significant likelihood of a downward correction.

At present, the immediate support is provided by the 61.8% retracement level and the 50-day exponential moving average, situated at 4475. Should the price undergo a bearish breach beneath this level, the next potential support lies around 4435.

Conversely, an optimistic scenario entails a breakout above the 4530 resistance level, which could pave the way for the S&P 500 index to target the resistance levels at 4560 or 4600.

For traders, vigilant monitoring of the 4500 level is imperative. This juncture presents a prospective selling opportunity in the event of a bearish breakdown, while a sustained support might indicate a favorable buying opportunity.

Daily Price Outlook

The EUR/USD currency pair has been facing challenges as it struggles to rise above the 1.1000 level on Tuesday. Investors are worried about a possible recession in the area, which is putting pressure on the pair. However, the decline in EUR/USD currency pair was driven by a recent survey indicating that consumer inflation expectations for the upcoming 12 months dropped to 3.4% in June. Moreover, the strong US dollar was seen as another important factor that weakened the EUR/USD currency pair.

EUR/USD Pair Affected by Mixed Eurozone News and ECB Rate Speculation

According to the latest data, the Eurozone Sentix Investor Confidence showed a slight improvement, moving from -22.5 in July to -18.9 in August. This result was better than what experts had predicted at -23.4. However, it's important not to get too carried away with this positive change. Patrick Hussy from Sentix pointed out that the Eurozone economy is still stuck in a recession. This means we shouldn't think everything is great just because there was a small improvement.

Moreover, Germany's Industrial Production numbers for June dropped by -1.5% compared to expectations of -0.4%. This raised concern and impacted the EUR/USD pair's performance.

Eurozone's Inflation Worries Impact EUR/USD Pair

According to the European Central Bank's survey, people in the Eurozone were still worried about inflation in June. They thought prices would go up by 3.4% in the next year, which is lower than the 3.9% they predicted in May. Looking three years ahead, they expected inflation to be 2.3%, down from 2.5% in May. People also believed that their income wouldn't change much, but they expected to spend less. The outlook for economic growth in the next year got a little better, and expected unemployment in a year remained the same. As a result, the EUR/USD pair dropped to 1.0970, marking a 0.25% decrease.

US Dollar's Focus and Upcoming Economic Indicators for EUR/USD Direction

On the US front, people are paying attention to the US dollar because a Federal Reserve member, Michelle Bowman, said that increasing interest rates could help control inflation. This could make the US dollar stronger and limit gains in the EUR/USD pair.

Furthermore, people will be watching Germany's Consumer Price Index for July on Tuesday, and then the US Consumer Price Index on Thursday. These events will affect the US dollar and show where the EUR/USD pair might go.

EUR/USD - Technical Analysis

The EUR/USD pair exhibited marginal upward shifts during the preceding evening, scrutinizing the resistance posed by the EMA50. As we initiate the current trading day, a revitalized bearish sentiment has manifested, characterized by a trajectory aimed at revisiting the 1.0955 level.

This tactical move is congruent with the ongoing preservation of the bearish trend scenario, which persists as a consequence of the observed completion of a double top pattern. This specific pattern instigated a deviation from the previously observed bullish trajectory, subsequently initiating a bearish correction with its ensuing target positioned at 1.0880.

Consequently, we anticipate the continuation of negative market dynamics in the forthcoming trading sessions. However, it is prudent to acknowledge that a breach of the 1.1030 level would serve to mitigate the prevailing downward pressure, potentially redirecting the price towards the primary bullish trend.

The anticipated trading range for the present day is projected to fluctuate within the boundaries of support at 1.0900 and resistance at 1.1040.

Daily Price Outlook

Gold price (XAU/USD) failed to stop its long losing streak and slipped to around $1,930.00 as concerns about upcoming Consumer Price Index (CPI) data weighed on its appeal. Furthermore, the precious metal faced pressure due to a strong US Dollar, with investors worried that US inflation could stay high due to ongoing wage growth and rising global oil prices. As a result, this marks the second consecutive day of Gold losing its value. It dropped to a fresh low of around $1,931 during the Asian trading session. Nonetheless, it's important to note that it's still higher than the lowest point it hit three and a half weeks ago.

Factors Affecting Gold Price: US Dollar Strength and Fed's Policy Outlook

The broad-based US Dollar is getting stronger as people believe the Federal Reserve might tighten its rules, causing Gold prices to drop. Many predict a 0.25% interest rate hike by the Fed in either September or November, supported by recent job data. Although the main job number was not satisfactory, higher wages and lower unemployment show a solid job market.

Michele Bowman from the Fed suggests more rate hikes to control inflation, and John Williams hints at possible rate cuts in early 2024, depending on the economy. Looking ahead, the upcoming consumer price data from both China and the US could have an impact on Gold's value. If readings are lower, it might lead to a reduction in expectations for rate hikes, which could affect the price of Gold.

Potential Impact on Gold Price: Inflation Trends, Fed Rates, and Uncertainties

Looking ahead, if inflation decreases as experts expect, and if the economy gets stronger, some investors might start thinking the Fed will raise interest rates this year. This could lead to Gold's price dropping more, even though Gold is usually seen as a way to protect against inflation. But things are a bit mixed up right now, so it's smart to be careful before deciding that Gold will definitely keep getting cheaper.

On the other hand, the recent selling shows that the drop in Gold's price we've been seeing for the last three weeks isn't done yet. This suggests that Gold's price will probably keep going down for a while.

GOLD(XAU/USD) - Technical Analysis

The gold price is displaying a more pronounced bearish inclination as it approaches the minor support level at $1929.00. The impending objective is to breach this level, thereby facilitating the achievement of our primary anticipated target positioned at $1913.15.

Consequently, our outlook maintains a bearish trajectory for the upcoming period, influenced by the previously formed double top pattern, in conjunction with the downward pressure exerted by the EMA50. It is important to note that surpassing $1945.20 would nullify the previously mentioned negative configuration, potentially prompting a price attempt to reestablish a bullish trend.

The projected trading range for today is anticipated to fluctuate between the support at $1915.00 and the resistance at $1945.00.

Daily Price Outlook

EUR/USD is facing downward pressure as it remains below the critical 1.1000 level, vulnerable to modest USD strength. The pair retreated from its four-day peak around 1.1040, reacting to disappointing US NFP figures on Friday. During the Asian session, EUR/USD slipped below 1.1000, with a temporary halt to its two-day recovery from the 100-day SMA, near the recent one-month low reached last Thursday.

The US Dollar gains support as market sentiment leans towards the Federal Reserve maintaining its hawkish stance. July's nonfarm payroll report showed an addition of 187K jobs, signaling weakening demand for workers despite steady wage growth and an unexpected decline in the unemployment rate. This keeps the door open for the Fed to raise interest rates by another 25 basis points in September or November, boosting the USD and exerting pressure on EUR/USD.

Conversely, the European Central Bank (ECB) is expected to end its nine straight interest rate increases amid indications that underlying inflation in the Euro Zone has peaked. Fitch Ratings suggests that the peak in ECB rates is imminent due to declining Euro Zone inflation. The ECB's economic report released on Friday highlighted that the region's underlying inflation likely peaked during the first half of 2023, adding to the negative sentiment surrounding EUR/USD.

The upcoming US CPI report on Thursday will have a significant impact on market expectations for future rate hikes and USD demand. In the meantime, macroeconomic data for the Euro Zone, including German Industrial Production and Sentix Investor Confidence, will provide guidance for traders. The USD's performance will depend on comments from several FOMC members, as there are no major US economic releases scheduled at present. Policy-related remarks could create short-term opportunities for traders, but given the current landscape, a bearish outlook for EUR/USD remains the prevailing trend.

EUR/USD - Technical Analysis

The EURUSD pair's upward march was halted at the 1.1030 level, which corresponds to the disrupted neckline of the double top pattern, as depicted on the chart. It's noteworthy that the price has begun to display a bearish rebound from this juncture, indicating a potential return to the correctional bearish wave and setting negative targets down to 1.0880.

Hence, we anticipate further bearish propensity in the forthcoming trading sessions, reinforced by the clear negativity exhibited by the Stochastic Oscillator. However, it should be noted that a breach of the 1.1030 level could interrupt the projected decline and steer the price back to the primary bullish trend.

Today's expected trading range lies between the 1.0900 support and 1.1050 resistance levels.

The predicted market trend for today is bearish.

Daily Price Outlook

XAU/USD fails to leverage post-NFP rebound from a multi-week trough.

After an initial ascent to nearly $1,946 during Monday's Asian trading window, gold encounters selling pressure, resulting in a new daily low during the final trading hour. Currently, XAU/USD is hovering around the $1,940 mark, indicating a temporary halt in its modest recovery from Friday's level, the lowest recorded since July 11th.

In July, the US economy persisted in job creation at a significant rate, as highlighted in the closely watched monthly employment report. However, the downward revisions for May and June data hint at a softening demand for labor.

Yet, robust wage growth coupled with an unexpected dip in unemployment signals a persistently tight labor market. This bolsters market sentiment that the Federal Reserve (Fed) will sustain higher interest rates for an extended period, which in turn provides a lift to USD, enticing dip-buyers as the new trading week commences. A robust dollar is perceived to exert downward pressure on gold prices denominated in US dollars.

Looking ahead, the absence of any significant market-moving economic data from the US slated for Monday's release implies that traders will pay close attention to speeches from key Fed officials. These could sway US bond yields and USD demand. Besides, prevailing risk sentiment could offer some direction to gold prices. However, in the current landscape, bears seem to have an upper hand, fueling anticipation for an extension of the downtrend that has been in play for over a fortnight.

GOLD(XAU/USD) - Technical Analysis

Gold prices have recently engaged the crucial resistance level at $1945.20, yet have managed to maintain their stability below this level. This threshold acts as a significant obstacle to positive price fluctuations.

Notably, the Stochastic Oscillator indicates evident overbought conditions at present, which may potentially trigger a return to the anticipated intraday bearish wave, targeting the next level at $1913.15.

The 50-day Exponential Moving Average (EMA50) reinforces the likelihood of the projected bearish trend, a prediction that will stand as long as the price sustains below the $1945.20 level.

It should be noted that a breakthrough of the proposed target might instigate further losses for the price, potentially driving it towards $1893.00.

Daily Price Outlook

The AUD/USD currency pair initially showed signs of a bullish trend, but it could not sustain the momentum and experienced a significant drop after encountering strong resistance near 0.6590 during the European session. However, the decline was primarily driven by a major rebound in the US Dollar Index (DXY) as traders eagerly awaited the release of the United States Nonfarm Payrolls (NFP) data at 12:30 GMT.

The NFP report is highly anticipated and could have a major impact on the movement of the currency pair. As a result, the market sentiment is cautious, with investors exercising caution and refraining from making bold moves until the crucial economic data is unveiled.

Impact of US Market Developments on AUD/USD Currency Pair

The AUD/USD currency pair could be influenced by recent developments in the US markets. However, the significant gains in S&P500 futures and the rebound of the US Dollar Index (DXY) around 102.40 indicate strength in US equities and a hopeful sentiment ahead of the labor market report. Thereby, the positive US labor market data may lead to concerns among Federal Reserve policymakers, potentially triggering a recovery in inflationary pressures.

Consequently, the AUD/USD pair might face pressure as the US Dollar strengthens, possibly resulting in a decline in its value. Traders must closely monitor US labor market data and its impact on inflation, as these factors could significantly influence the AUD/USD pair's short-term movement.

RBA Minutes and Inflation Target Weigh on AUD/USD Pair

Despite the recent release of less-hawkish RBA minutes from August, the Australian Dollar failed to gain support. The RBA policymakers expressed the possibility of further tightening due to inflation moving towards the 2% target by late 2025. This cautious stance could limit the Aussie's upward momentum, potentially putting downward pressure on the AUD/USD pair as investors reevaluate their expectations for the RBA's monetary policy outlook.

Thereby, traders need to closely monitor any updates in the RBA's stance and its impact on inflation to better understand the potential direction of the AUD/USD pair in the short term.

AUD/USD - Technical Analysis

The AUD/USD pair made a valiant attempt to break through the 0.6550 level but encountered robust support, leading to a momentary wavering just above it. Meanwhile, the Stochastic indicator has climbed to overbought levels, fueling speculation of a potential return to negative trading and a possible breach of the aforementioned support, which could then open the path towards 0.6400 as the next significant target.

As the battle between bulls and bears unfolds, the dominant outlook points towards a continued downward trend in the intraday and short-term levels. However, if the 0.6550 level manages to hold firm against negative pressure, it could effectively halt the bearish scenario and propel the price higher, introducing a twist to the narrative.

Market participants are bracing themselves for today's trading, anticipating a range between the support level of 0.6500 and the resistance level of 0.6600. The tension rises as we eagerly await the outcome of this exciting market dynamic!

Daily Price Outlook

The EUR/USD currency pair has been unable to maintain its upward momentum and has recently lost some traction, currently trading at the level of 1.0943. Investors seem cautious and showing hesitancy in making strong bids due to the mixed market sentiment, which has been driven by the anticipation of crucial economic data releases from the US. Furthermore, the Eurozone's Retail Sales for June experienced a decline of 0.3% every month, falling short of the expected 0.2% growth. This disappointing economic data has further weakened the position of the EUR/USD pair in the market.

European Central Bank (ECB) Rate Hike Impact on EUR/USD Pair

The European Central Bank (ECB) increased interest rates by 0.25% to 4.25%. ECB President Christine Lagarde aims to achieve a 2% inflation target in the medium term. ECB member Fabio Panetta supports keeping higher interest rates for a while, balancing inflation risks with a weak economy to support growth.

These decisions can impact borrowing costs, savings, and overall economic conditions in the eurozone. The rate hike may attract investors to the Euro due to higher returns, potentially strengthening the currency against the US Dollar and appreciating the EUR/USD pair. Notably, the ECB's goal is to manage inflation and support economic growth in the eurozone.

Recent Economic Data Highlights Mixed Picture of Eurozone's Economy

According to recent data, Germany's Factory Orders have shown positive growth, increasing by 3.0% YoY and 7.0% monthly, signaling strength in the manufacturing sector. However, the Eurozone's Producer Price Index (PPI) for June dropped to its lowest level in three years, showing a decline of -3.4% YoY. Additionally, the HCOB Composite PMI for the bloc fell from 48.9 to 48.6, and the services PMI declined from 51.1 to 50.9 in July. These figures present a mixed picture of the Eurozone's economy, with signs of improvement in manufacturing but challenges in other sectors.

Impact of Upcoming US Data on USD and EUR/USD Pair

Looking forward, traders are awaiting the release of US wage inflation and employment data, which will likely influence the Federal Reserve's decisions on rate hikes. These decisions will have a direct impact on the US Dollar's performance and may exert pressure on the EUR/USD pair. Moreover, the focus will be on key indicators like Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings, providing trading opportunities for those interested in the EUR/USD pair.

EUR/USD - Technical Analysis

EUR/USD continues its intriguing journey as it tests the crucial resistance level at 1.0955. Despite its efforts to breach this pivotal point, the pair has managed to hold on below it, keeping the downward trend intact. Traders eagerly await the next move, with potential targets at 1.0880 and 1.0835, making for an exciting market outlook.

Adding to the intrigue, the Stochastic indicator has lost its positive momentum and entered overbought territory, providing further support for the resumption of the downward trend. However, it's important to keep an eye on potential game-changers – a breakthrough of 1.0955, followed by 1.0990, could effectively thwart the negative scenario and redirect prices towards the main upward trend.

As we gear up for today's trading, the anticipated range stands between the support level of 1.0850 and the resistance level of 1.1000. The excitement builds as we navigate the potential twists and turns of the market!

Daily Price Outlook

Gold (XAU/USD) price has been fluctuating as investors closely watch economic indicators and global developments. Gold price failed to stop its previous bearish rally and remained well offered around well below 1,930 level. However, the upcoming US Nonfarm Payrolls report is crucial, as it could impact the Federal Reserve's decision on interest rates in September. This uncertainty has put pressure on Gold prices, as investors fear a potential rate hike, which could strengthen the US Dollar and reduce demand for Gold.

In the meantime, the market's risk-off sentiment and high US Treasury bond yields have made it difficult for Gold buyers. Moreover, the economic data and geopolitical events continue to influence Gold's movement, making it essential for investors to analyze these factors carefully.

Economic Indicators and US Dollar Performance

Gold price remained relatively unaffected despite weak economic indicators like the US Services PMI and labor cost index. This is because the strength of the labor market does not always directly impact Gold prices; it's more connected to the performance of the US Dollar. Thus, the stronger US Dollar have contributed to a dip in Gold prices.

Furthermore, the global events and geopolitical tensions have significantly impacted the Gold price. For example, when Fitch Ratings downgraded the US credit rating, investors sought safety in Treasury bonds, affecting market sentiment. Apart from this, the tensions between the US and China, worries about China's economic growth, and news of potential restrictions on US investments in China have created uncertainty, influencing Gold prices. Hence, these events highlight how external factors can play a crucial role in shaping Gold's market movements.

Impact of Recently Released US Statistics on Fed Rate Hike, US Dollar, and Gold Price

According to the recently released US statistics, there is a chance of another rate hike by the Fed in 2023, despite low probabilities. The US Dollar is being boosted by economic fears arising from the US credit rating downgrade and US-China tensions, which is affecting the Gold price. In July, the US ISM Services PMI dropped to 52.7 from 53.9, with softer Employment and New Order Index readings, while Prices Paid increased. On a positive note, US Factory Orders improved to 2.3% in June, and Initial Jobless Claims met expectations. Nonfarm Productivity for Q2 rose by 3.7%, and Unit Labor Cost eased to 1.6%.

GOLD(XAU/USD) - Technical Analysis

The gold price is currently teetering just below the critical mark of $1929.00, but it's not sitting still! Amid timid yet intriguing positive trading, the precious metal managed to stage a bounce back. However, all eyes are on the Stochastic indicator, which seems to have lost its positive momentum, eagerly waiting for the price to unveil its next move. Will it resume its downward journey, targeting the intriguing level of $1913.15?

The stakes are high as the downward trend awaits continuation, with all eyes on the intriguing Double Top pattern that has been completed. To maintain this exciting bearish momentum, the price must strive to remain below $1945.20.

Today's trading is sure to keep traders on their toes, with an expected trading range of $1915.00 to $1945.00. The suspense builds as we eagerly watch the thrilling price action unfold!

Daily Price Outlook

The EUR/USD currency pair is still going down, making it the fourth day in a row that it's been falling. On Thursday, the pair is hovering very close to its lowest point since July 7th. However, the main reason for this ongoing fall can be attributed to the fact that a lot of people in the market expect the Federal Reserve (Fed) to raise interest rates soon. This expectation has made the US Dollar (USD) worth more, reaching its highest value in four weeks. All these things combined are making it hard for the EUR/USD pair to recover and go up again.

Fed's Influence and Dollar's Resilience

The US Dollar is still doing well and is close to its highest value in four weeks compared to the Euro. This is happening because many people expect the Federal Reserve to make its rules stricter. This is influenced by the good news about jobs in the US, like the recent ADP jobs report, which shows that the economy is strong. As a result, the Fed might keep interest rates higher for a longer time. This confidence makes the interest rates on US government bonds go up, which helps the Dollar.

When they do that, the interest rates on US government bonds stay high too, which helps the Dollar stay strong. As a result, the exchange rate between the Euro and the US Dollar (EUR/USD) is feeling pressure because the strong Dollar makes it more expensive to buy Euros.

ECB's Uncertainty and Data-Driven Approach: Potential Impact on EUR/USD Pair

ECB President Christine Lagarde recently mentioned in an interview with Le Figaro that no decisions have been finalized for the upcoming September 14 meeting. She highlighted that the central bank's actions will depend on the latest economic and financial data. This follows the Euro Zone's headline inflation slowing to 5.3% YoY in July from 5.5% before, though core inflation remained steady at 5.5%.

This uncertainty and data-driven approach could impact the EUR/USD pair, potentially adding to its ongoing fluctuations as traders assess the ECB's upcoming moves based on economic indicators.

EUR/USD - Technical Analysis

EUR/USD has successfully reached its first negative target at 1.0935, and there are indications of further downward movement in the upcoming sessions, potentially leading to the next significant target at 1.0835.

As we closely monitor the intraday levels, the 50 SMA is exerting negative pressure on the pair. However, there is a possibility of a potential reversal if EUR/USD manages to pierce through the resistance levels at 1.0955 and 1.0990, effectively halting the current downward trend and steering the pair back into the ascending channel.

For today's trading, we anticipate the EUR/USD to move within the trading range of support at 1.0840 and resistance at 1.1000. As per our analysis, the expected trend for today remains bearish.

Daily Price Outlook

The GBP/USD currency pair experienced a bearish consolidation during the Asian session on Thursday. It remained within a narrow range, below a one-month low at 1.2640. The GBP/USD pair is currently around 1.2638, and traders appear cautious, refraining from taking aggressive positions as they await the upcoming monetary policy update from the Bank of England (BoE) later today. This update will likely have a major effect on the market, so traders are being cautious and watching closely before making any major moves in the GBP/USD pair.

UK Inflation Rate and Its Impact on GBP/USD Pair

According to the latest data, the UK's headline inflation rate decreased to 7.9% YoY in June, down from the previous 8.7%. This might lead the UK central bank to consider a smaller 25 bps interest rate increase, pushing the benchmark rate to 5.25%, the highest since December 2007. However, some investors are anticipating a more significant 50 bps rate hike due to persistent inflation above the Bank of England's (BoE) 2% target. As a result, all eyes will be on the monetary policy statement and press conference for clues about the future rate hike path. Thus, the growing expectations will significantly impact the British Pound and give a new direction to the GBP/USD pair.

USD Bullish Sentiment Weighs on GBP/USD Pair

The broad-based US Dollar is experiencing a bullish sentiment, which is putting pressure on the GBP/USD pair. The USD Index (DXY), which measures the USD against other currencies, is near its highest level since July 7, backed by expectations of a strong US economy that could keep interest rates higher for a longer time.

However, the recent positive US ADP jobs report, showing 324K jobs added in July compared to the expected 189K, further reinforces this view. Despite the Fitch downgrade of the US credit rating, the elevated US Treasury bond yields support the USD and limit the upside for the GBP/USD pair.

Upcoming US Macro Data and NFP Report: Potential Impact on GBP/USD Pair

Looking forward, traders will closely monitor various US macroeconomic data, including jobless claims, service industry activity, and factory orders. These indicators, along with US bond yields and overall market sentiment, will influence the demand for the US Dollar (USD) and create short-term trading opportunities for the GBP/USD pair.

GBP/USD - Technical Analysis

Yesterday, the GBP/USD pair experienced a bearish trend, successfully reaching the initial target at 1.2725, and even closing below it. This development strengthens the possibility of a continued downward correctional trend, with the next significant target at 1.2625.

The formation of a Double Top pattern signals further negativity, potentially leading the price to test 1.2500. As long as the price remains below 1.2835, the bearish trend is likely to persist.

For today's trading, we expect the GBP/USD to move within the range of support at 1.2620 and resistance at 1.2790. Our analysis indicates a bearish trend for today's session.