Daily Price Outlook

During Monday's Asian session, the GBP/USD pair struggled to maintain its upward momentum and lost some of its gains, hovering around the 1.2160 mark. However, this decline followed the release of discouraging United Kingdom (UK) Retail Sales data for September last Friday. Moreover, the robust US Dollar has exerted significant pressure on the GBP/USD currency pair. However, the US dollar was bolstered by the positive performance of US Treasury yields.

UK Retail Sales Decline Sparks Concerns About Inflation

It's worth noting that the monthly UK retail sales figures revealed a 0.9% decline, which came as a surprise compared to the anticipated 0.1% decrease. This followed a modest 0.4% increase in August. On an annual basis, sales were down by 1.0%, contrary to expert predictions.

However, the decline in retail sales indicates that consumers are experiencing financial pressure due to higher prices and increased borrowing costs. Thereby, this notable decrease in consumer spending is expected to impact inflation perceptions. Therefore, there is speculation that the Bank of England (BoE) might choose to keep the current interest rates at 5.25% during their November meeting.

US Dollar Strength and Fed's Stance Impacting GBP/USD Pair

Moreover, the US Dollar Index (DXY) is attempting to recover its recent losses and gained some traction, possibly due to robust economic data coming from the United States. Further, the strong performance of US Treasury yields is providing a lift to the US Dollar (USD), with the 10-year US Treasury yield presently standing at 4.96%, up by 0.92% at this time. Consequently, the strong US dollar is considered one of the primary factors restraining the GBP/USD pair.

Meanwhile, Federal Reserve (Fed) Chairman Jerome Powell, on Thursday, indicated that the central bank does not have immediate intentions to raise interest rates, which provided a lift to the GBP/USD pair. Powell also noted that they may need to consider tightening monetary policy further if they observe additional signs of economic growth or if the job market ceases to improve.

On Friday, Atlanta Fed President Raphael Bostic stated that he anticipates the US central bank will not lower interest rates until the middle of next year. Additionally, Fed Philadelphia President Patrick Harker voiced his preference for maintaining the current interest rates.

Furthermore, Fed Cleveland President Loretta Mester indicated that the US central bank might have reached the peak of the rate hike cycle but acknowledged that recent data could influence their future policy decisions.

As a result, the dovish stance taken by the Fed was regarded as the primary factor limiting the upward momentum of the US dollar and contributing to the gains in GBP/USD.

GBP/USD - Technical Analysis

As global markets grapple with ongoing macroeconomic uncertainties, the GBP/USD currency pair offers a compelling narrative for investors and traders alike. As of the latest data, the pair stands at 1.21465, registering a slight decline of 0.10%. Analyzing the 4-hour chart provides a more granular perspective on the potential paths the currency pair might traverse in the near future.

Central to this analysis is the pivot point, currently situated at 1.2178. This metric serves as a barometer for potential bullish or bearish shifts. On the upside, GBP/USD faces immediate resistance at 1.2217. If bullish momentum persists, traders could eye the subsequent resistance levels of 1.2274 and 1.2334. Conversely, should the pair come under selling pressure, immediate support lies at 1.2125, with deeper supports at 1.2068 and 1.2020, respectively.

Diving deeper into the technical indicators, the Relative Strength Index (RSI) for GBP/USD reads at 47. While the 50-mark often demarcates bullish from bearish sentiment, the current RSI suggests a neutral stance with a slight bearish lean, given that it is below the 50 threshold.

Adding another layer of analysis, the Moving Average Convergence Divergence (MACD) provides crucial insights. With an MACD value of 0.00038 and a signal value of -0.00081, the MACD line's position above the signal line signifies potential upward momentum in the short term—a bullish indication.

Lastly, the 50-Day Exponential Moving Average (EMA) is pegged at 1.2173, almost in line with the current price. The GBP/USD's proximity to this EMA indicates a tussle between the bulls and the bears, with neither side having a clear advantage currently.

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Daily Price Outlook

The GBP/USD, colloquially known as "Cable," has always been a significant pair in the forex markets. It serves as a temperature gauge for the relative economic strength and geopolitical dynamics between the UK and the US. As of our analysis date, October 18, the pair stands at 1.21796, noting a slight uptick of 0.20%.

The pivotal level to monitor is 1.2220. On the upside, resistances lie at 1.2274, followed by 1.2338, and a more prominent level at 1.2421. On the downside, key supports are stationed at 1.2124, followed by 1.2069, and 1.2020.

In the realm of technical indicators, the RSI reads 47, suggesting a somewhat bearish sentiment as it's below the 50 midpoint. Interestingly, the MACD has shown a bullish sign, with its line crossing above the signal line, suggesting potential upward momentum. The current price is marginally below the 50 EMA at 1.2199, a level that might act as a short-term pivot.

The GBP/USD paints a mixed picture. It leans bearish as prices remain below 1.2200, but the MACD suggests a potential bullish momentum. This contradiction suggests traders might be in for a period of consolidation or volatility. In the short term, the pair could waver around the 1.2200 mark, possibly testing the nearby resistances if the upward momentum continues.

GBP/USD  - Trade Idea

Entry Price – Sell Limit 1.22158

Take Profit – 1.21341

Stop Loss – 1.22601

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$817/ -$443

Profit & Loss Per Micro Lot = +$81/ -$44

Daily Price Outlook

Despite the US Dollar's initial attempt to recover from previous losses, GBP/USD halted its decline and gained momentum, trading at approximately 1.2182 during the European session on Wednesday. However, the positive economic data from the United States initially exerted some downward pressure on the pair, but this effect proved to be short-lived. The United Kingdom's CPI for September, which surged to 6.7% year-on-year, exceeded the expected 6.5%. This unexpectedly high UK CPI figure could potentially strengthen the GBP against the USD by signaling increasing inflation and the possibility of interest rate hikes. This, in turn, would make the GBP more appealing to investors.

UK CPI Data Shows Resilient Inflation, Limited Impact on GBP/USD

According to official data from the Office for National Statistics (ONS), the United Kingdom's Consumer Price Index (CPI) remained stable with a 6.7% annual increase in September, in line with the August figure, and surpassing the anticipated 6.5% rise. The Core CPI (excluding food and energy) increased by 6.1% year-on-year, slightly lower than August's 6.2%, which was in line with the expected consensus of 6.0%.

In the meantime, the All Services CPI registered a 6.9% year-on-year growth, a slight uptick from August's 6.8%. In terms of monthly changes, the UK CPI increased by 0.5% in September, surpassing the expected 0.4% rise and exceeding August's 0.3%.

In response to the UK CPI data, GBP/USD showed a subdued reaction, continuing its recovery trajectory and hovering around 1.2192, marking a 0.12% gain for the day. This development is of importance as it reflects the current inflation rate in the UK, with the potential to impact the country's economic policies and currency exchange rates.

Anticipation for UK CPI Data on Wednesday

Looking ahead to Wednesday, investors have their eyes on the UK Consumer Price Index (CPI). Forecasts suggest a slight decrease in the annual figure, shifting from 6.7% to 6.5%. The Core CPI, which excludes volatile items, is also expected to ease from September's 6.2% to 6%.

Despite the moderation in the annual figures, there is an expectation of a notable increase in the monthly CPI, projected to rise from 0.3% to 0.4%. If indeed monthly inflation does increase, it could trigger speculation about the Bank of England (BoE) contemplating another interest rate hike. Currently, the likelihood of a 25 basis point BoE rate hike stands at approximately 50% for this cycle. Hence, the potential decrease in annual CPI and an increase in monthly CPI in the UK could lead to GBP/USD volatility, with markets closely watching for BoE rate hike speculation.

GBP/USD - Technical Analysis

The GBP/USD, colloquially known as "Cable," has always been a significant pair in the forex markets. It serves as a temperature gauge for the relative economic strength and geopolitical dynamics between the UK and the US. As of our analysis date, October 18, the pair stands at 1.21796, noting a slight uptick of 0.20%.

The pivotal level to monitor is 1.2220. On the upside, resistances lie at 1.2274, followed by 1.2338, and a more prominent level at 1.2421. On the downside, key supports are stationed at 1.2124, followed by 1.2069, and 1.2020.

In the realm of technical indicators, the RSI reads 47, suggesting a somewhat bearish sentiment as it's below the 50 midpoint. Interestingly, the MACD has shown a bullish sign, with its line crossing above the signal line, suggesting potential upward momentum. The current price is marginally below the 50 EMA at 1.2199, a level that might act as a short-term pivot.

The GBP/USD paints a mixed picture. It leans bearish as prices remain below 1.2200, but the MACD suggests a potential bullish momentum. This contradiction suggests traders might be in for a period of consolidation or volatility. In the short term, the pair could waver around the 1.2200 mark, possibly testing the nearby resistances if the upward momentum continues.

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Daily Price Outlook

Despite the dovish stance of the Bank of England (BoE) regarding future interest rate hikes, the GBP/USD currency pair has been performing well today, with an increase of 0.30%, trading in the range of 1.2175 to 1.2180. Notably, this positive change comes after two consecutive days of losses. However, the reason behind this uptrend can be attributed to a weakening of the US dollar, driven by uncertainty surrounding potential interest rate hikes by the Federal Reserve. Besides this, investor confidence has grown due to risk-on-market sentiment, which is putting further pressure on the US dollar.

Factors Impacting GBP/USD and the Weaker US Dollar

The broad-based US dollar is beginning the week on a weaker note due to uncertainties surrounding the Federal Reserve's potential interest rate hikes. This uncertainty bodes well for the GBP/USD pair. It should be noted that the several Federal Reserve officials have recently indicated that they may not raise rates in November. This, coupled with the positive sentiment in the stock market, is lowering the attractiveness of the US dollar.

Nevertheless, last week, the US data release indicating a rise in consumer prices prompted some individuals to speculate that the Federal Reserve might raise interest rates by year-end. This development has driven up interest rates on US Treasury bonds, which is beneficial for the dollar.

Furthermore, the ongoing battle between Israel and Hamas, have led some to seek the safety of the dollar for their investments. This ws seen as one of the key factor that may help the US dollar to limit its deeper losses. Lastly, the expectation that the Bank of England will maintain its existing policies in November was seen as another key factor that acting as a barrier, preventing the GBP/USD pair from making more significant gains.

GBP/USD Outlook and Key Factors to Monitor

Furthermore, the Bank of England (BoE) surprised everyone by refraining from raising interest rates in September and providing no clear signals about when they might do so. Therefore, investors must patiently await a strong buying interest in the GBP/USD pair before concluding whether the recent decline from the mid-1.2300s has come to an end. On Monday, there are no significant economic data releases in the UK, but the US will be releasing the Empire State Manufacturing Index.

Notably, the speeches from influential Federal Reserve (FOMC) members will be in spotlight in order to gain insights into the future actions of the US central bank. Furthermore, the performance of US bond yields and the overall market sentiment will play a major role in determining the demand for the US dollar, affecting the GBP/USD pair later in the day.

GBP/USD - Technical Analysis

On October 16, the GBP/USD currency pair observed a modest uptick, registering a price of 1.21614, reflecting a gain of approximately 0.15% during the Asian trading window. This movement has been captured over a 4-hour chart timeframe, presenting critical data and inferences.

An essential metric, the pivot point, is identified at 1.22047 for the GBP/USD pair. On the upside, potential resistance levels are established at 1.22815, followed by a stronger resistance at 1.24174, culminating at the significant 1.24971. Conversely, should the pair experience downward traction, the immediate support to be mindful of stands at 1.20658. Subsequent layers of support solidify at 1.1989 and deepen further at 1.18532.

Shifting focus to key technical indicators, the Relative Strength Index (RSI) for the GBP/USD is valued at 40. While this doesn't immediately indicate overbought or oversold conditions, it's verging on a bearish sentiment. The Moving Average Convergence Divergence (MACD) reveals a value of -0.0014, with its signal line positioned at -0.0021. This formation suggests that the MACD line resides above the signal line, potentially hinting at an upcoming bullish momentum. Meanwhile, the 50-Day Exponential Moving Average (EMA) is calculated at 1.22131. Since the current GBP/USD price is slightly below this EMA, it points towards a short-term bearish sentiment.

In conclusion, the 50 EMA coupled with the recently breached upward channel is now establishing resistance at 1.2228. This resistance level holds significance and is one traders and investors might want to keep an eye on for future movements.

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Daily Price Outlook

On October 16, the GBP/USD currency pair observed a modest uptick, registering a price of 1.21614, reflecting a gain of approximately 0.15% during the Asian trading window. This movement has been captured over a 4-hour chart timeframe, presenting critical data and inferences.

An essential metric, the pivot point, is identified at 1.22047 for the GBP/USD pair. On the upside, potential resistance levels are established at 1.22815, followed by a stronger resistance at 1.24174, culminating at the significant 1.24971. Conversely, should the pair experience downward traction, the immediate support to be mindful of stands at 1.20658. Subsequent layers of support solidify at 1.1989 and deepen further at 1.18532.

Shifting focus to key technical indicators, the Relative Strength Index (RSI) for the GBP/USD is valued at 40. While this doesn't immediately indicate overbought or oversold conditions, it's verging on a bearish sentiment. The Moving Average Convergence Divergence (MACD) reveals a value of -0.0014, with its signal line positioned at -0.0021. This formation suggests that the MACD line resides above the signal line, potentially hinting at an upcoming bullish momentum. Meanwhile, the 50-Day Exponential Moving Average (EMA) is calculated at 1.22131. Since the current GBP/USD price is slightly below this EMA, it points towards a short-term bearish sentiment.

In conclusion, the 50 EMA coupled with the recently breached upward channel is now establishing resistance at 1.2228. This resistance level holds significance and is one traders and investors might want to keep an eye on for future movements.

GBP/USD - Trade Idea

Entry Price – Sell Limit 1.22041

Take Profit – 1.21197

Stop Loss – 1.22528

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$844/ -$487

Profit & Loss Per Micro Lot = +$84/ -$48

Daily Price Outlook

The GBP/USD currency pair, as presented on the 4-hour chart, is currently trading at 1.22912. The established pivot point for the pair stands at 1.21769.

On the upside, immediate resistance lies at 1.2318, followed by 1.24016 and 1.25426. On the downside, GBP/USD experiences support at 1.20933, with subsequent support levels at 1.19523 and 1.18686.

From a technical indicators standpoint, the Relative Strength Index (RSI) showcases a value of 62.51, suggesting a bullish momentum without breaching the overbought threshold.

The MACD records a slight bullish divergence with a value of 0.00074, which is below its signal line placed at 0.0034. Notably, the current price of GBP/USD is trading above the 50-day Exponential Moving Average (EMA) marked at 1.22064, reinforcing the bullish bias in the short term.

GBP/USD - Trade Idea

Entry Price – Sell Limit 1.2301

Take Profit – 1.2208

Stop Loss – 1.2352

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$922/ -$512

Profit & Loss Per Micro Lot = +$92/ -$51

Daily Price Outlook

The GBP/USD currency pair succeeded to extend its previous sixth day upward rally and reached a nearly three-week high during the early European trading hours. It is currently trading below the 1.2300 mark. However, the reason behind this upward trend is the declining appeal of the US Dollar, as bond yields in the US have been dropping, Meanwhile, the risk-on market sentiment was seen as another key factor that undermined the US dollar and contributed to the GBP.USD currency pair.

Looking ahead, investors are putting thier attention to events including the US Producer Price Index (PPI), which will likely influence the market. Meanwhile, the market is awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes, which will provide some important information.

Fed Comments and Dovish Stance Impact on GBP/USD

It is worth noting that the recent comments made by Federal Reserve officials have dampened investor optimism regarding the Fed's intentions to follow an hawkish interest rate hike policy. Consequently, US Treasury bond yields have declined, which is unfavorable for the US Dollar. Therefore, the GBP/USD currency pair has been positively impacted by weaker US dollar.

Notably, Atlanta Fed President Raphael Bostic stated that the central bank doesn't need to raise interest rates further. However, this dovish stance, or cautious approach to monetary policy, is influencing market sentiment and further weakening the US Dollar. Hence, the Fed officials' comments have made investors think the Fed won't raise rates aggressively, and that's making the US Dollar less attractive. This is helping the GBP/USD currency pair.

Market Sentiment, Fed Expectations, and GBP/USD Outlook

Moreover, the positive sentiment in the market was seen as another reason why the US Dollar is struggling. Despite things are getting tense in the Middle East, investors don't seem too worried. They think the Federal Reserve will not raise interest rates. This positive view is making investors more comfortable with putting their money into riskier things like stocks and less interested in the safe-haven US Dollar.

Conversely, it is also important to understand that the market still believes the Fed could increase interest rates one more time before the year is over. That's why traders aren't completely giving up on the USD.

Looking forward, investors are keeping thier focus on two important reports, the US Producer Price Index (PPI) and the FOMC meeting minutes. Later, on Thursday, all eyes will be on the latest US consumer inflation figures. These reports could shape the currency pair's future moves.

GBP/USD - Technical Analysis

The GBP/USD currency pair, as presented on the 4-hour chart, is currently trading at 1.22912. The established pivot point for the pair stands at 1.21769.

On the upside, immediate resistance lies at 1.2318, followed by 1.24016 and 1.25426. On the downside, GBP/USD experiences support at 1.20933, with subsequent support levels at 1.19523 and 1.18686.

From a technical indicators standpoint, the Relative Strength Index (RSI) showcases a value of 62.51, suggesting a bullish momentum without breaching the overbought threshold.

The MACD records a slight bullish divergence with a value of 0.00074, which is below its signal line placed at 0.0034. Notably, the current price of GBP/USD is trading above the 50-day Exponential Moving Average (EMA) marked at 1.22064, reinforcing the bullish bias in the short term.

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Daily Price Outlook

The GBP/USD currency pair is in focus as forex traders keenly observe the pair's performance, especially against the backdrop of global economic uncertainties. Currently, GBP/USD is trading at 1.2195 as indicated by the latest data on a 4-hour timeframe. Noteworthy price levels for the pair have been identified, with a pivot point at 1.2280. If we witness a bullish momentum, the immediate resistance level for the pair stands at 1.2261, followed by 1.2336 and 1.2398. Conversely, on a potential bearish downturn, the pair could seek support at 1.2175, with subsequent supports looming at 1.2100 and 1.2035.

Looking at the technical indicators, the Relative Strength Index (RSI) reads 39.08. This number leans towards a bearish sentiment, indicating that the market might be under the selling pressure. However, there's a glimpse of hope for the bulls. The Moving Average Convergence Divergence (MACD) value stands at 0.00121 against its signal value of -0.01030, pointing towards a possible upward momentum in the near horizon. Another key indicator, the 50-Day Exponential Moving Average (EMA), is currently at 1.2170. The GBP/USD pair is trading just slightly above this level, which could be seen as a bullish sign in the short term.

From a chart pattern perspective, GBP/USD appears to find considerable support around the 1.2175 mark, aligning closely with the 50 EMA line. This suggests that this particular level could play a pivotal role in influencing the pair's direction in the upcoming sessions.

In conclusion, the GBP/USD pair's immediate trend appears to be cautiously optimistic, leaning bullish above the 1.2170 mark. However, as with all forex trading, global economic cues and geopolitical developments could introduce volatility, so it's imperative for traders to stay informed and vigilant.

GBP/USD - Trade Idea

Entry Price – Buy Limit 1.21759

Take Profit – 1.23014

Stop Loss – 1.21201

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$1255/ -$558

Profit & Loss Per Micro Lot = +$125/ -$55

Daily Price Outlook

The GBP/USD currency pair faced a challenging beginning this week, experiencing a slight dip below the 1.2200 mark. However, it swiftly rebounded and is presently hovering in the range of 1.2220 to 1.2225, approaching the one-week peak it achieved last Friday. However, the primary driver leading its fluctuations is the overall valuation of the US dollar.

On Monday, the British Pound (GBP) experienced a brief decline, primarily driven by escalating concerns surrounding the conflict between Israel and Hamas. These geopolitical tensions led investors to adopt a more cautious stance. Furthermore, the GBP/USD pair faced some downward pressure as market participants anticipated the possibility of the US Federal Reserve (Fed) implementing another interest rate hike.

Meanwhile, in contrast, the Bank of England (BoE) is expected to maintain its current interest rates to prevent concerns about a potential recession in the UK economy.

Global Tensions and US Job Report Impact on USD

It is essential to point out that the US dollar, seen as a safe option in uncertain times, scaled higher because people were worried about safety worldwide. This was sparked by rising tensions in the Middle East, where the Hamas group from Gaza, Palestine, attacked Israeli towns, prompting retaliatory airstrikes and a declaration of war by Israel. This led to many casualties on both sides. However, the uncertainty about what the Federal Reserve will do with interest rates is keeping the USD from making strong gains and is actually helping support the GBP/USD pair.

On another note, the US released its monthly jobs report (NFP) last Friday, and it was better than expected. It showed that the US added 336,000 jobs in September, which is higher than what experts predicted. This makes it more likely that the Fed will raise interest rates again by the end of the year. This expectation is also keeping US Treasury bond yields high and supporting the USD.

Challenges in the UK Economy Amid Inflation Battle

On the flip side, the UK is facing tough situation of high and long-lasting inflation. This means prices for things keep going up, and it's not going away quickly. The country's economic outlook is getting weaker because people aren't buying as much stuff and businesses are hesitant to borrow money because of the high interest rates. The Bank of England (BoE), which manages the country's money, plans to keep these high interest rates until prices stabilize and inflation drops to 2%.

Last week, the GBP/USD pair improved because the BoE said they're confident they can control prices. The BoE Governor, Andrew Bailey, said he thinks inflation might go down to 5% or even less by the end of the year, which is what Prime Minister Rishi Sunak wants. But keeping interest rates high is making it hard for people to buy things and causing more people to lose their jobs.

Looking forward, people are carefully watching a meeting (FPC) about the UK's financial plans. Additionally, August's industrial and manufacturing production data will be closely observed.

GBP/USD - Technical Analysis

The GBP/USD currency pair is in focus as forex traders keenly observe the pair's performance, especially against the backdrop of global economic uncertainties. Currently, GBP/USD is trading at 1.2195 as indicated by the latest data on a 4-hour timeframe. Noteworthy price levels for the pair have been identified, with a pivot point at 1.2280. If we witness a bullish momentum, the immediate resistance level for the pair stands at 1.2261, followed by 1.2336 and 1.2398. Conversely, on a potential bearish downturn, the pair could seek support at 1.2175, with subsequent supports looming at 1.2100 and 1.2035.

Looking at the technical indicators, the Relative Strength Index (RSI) reads 39.08. This number leans towards a bearish sentiment, indicating that the market might be under the selling pressure. However, there's a glimpse of hope for the bulls. The Moving Average Convergence Divergence (MACD) value stands at 0.00121 against its signal value of -0.01030, pointing towards a possible upward momentum in the near horizon. Another key indicator, the 50-Day Exponential Moving Average (EMA), is currently at 1.2170. The GBP/USD pair is trading just slightly above this level, which could be seen as a bullish sign in the short term.

From a chart pattern perspective, GBP/USD appears to find considerable support around the 1.2175 mark, aligning closely with the 50 EMA line. This suggests that this particular level could play a pivotal role in influencing the pair's direction in the upcoming sessions.

In conclusion, the GBP/USD pair's immediate trend appears to be cautiously optimistic, leaning bullish above the 1.2170 mark. However, as with all forex trading, global economic cues and geopolitical developments could introduce volatility, so it's imperative for traders to stay informed and vigilant.

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Daily Price Outlook

During the European session, the GBP/USD pair extended its sideways movement for a second consecutive day. It currently hovers near its lowest level since March 16, a point it reached earlier this week. It has slipped below the 1.2100 mark, raising concerns of a potential continuation of its downtrend, which originally commenced three months ago, stemming from a peak in July.

However, the bearish sentiment is largely attributed to growing expectations that the Federal Reserve may opt to raise interest rates once again, consequently boosting US bond yields. This upward movement in yields is strengthening the US dollar, as it attracts investors seeking higher returns. Moreover, a ongoing risk-off marker sentiment further bolstering the demand for the US dollar as a safe haven asset and contributed to the GBP/USD pair losses.

Adding to the mix is the unexpected decision by the Bank of England to leave interest rates unchanged. This unexpected move continues to exert downward pressure on the British pound, further complicating the outlook for the currency pair

Factors Supporting the Strong Performance of the US Dollar

It's worth noting that the US Dollar is remained strong and stands near a 10-month high. This is because of the Federal Reserve's more aggressive stance on monetary policy, which is acting as a challenge for the GBP/USD pair. Investors believe that the Fed will keep interest rates high for a while longer. Some Fed officials have even suggested another rate hike this year to control inflation.

Furthermore, the recent jobs report showed a significant increase in job openings, hinting at possible wage increases. This might push the Fed to keep raising rates into 2024, which is good for the USD. On the other hand, the US bond market is causing some worries as borrowing costs rise rapidly. This makes investors more cautious about risky investments and favors the safe-haven US Dollar.

Factors Affecting GBP/USD Performance

Another factor that has been pushing the GBP/USD pair down is the unexpected decision by the Bank of England (BoE) to maintain its current policy stance in September. This surprising move has left investors uncertain about the future of UK monetary policy and has put downward pressure on the British Pound (GBP).

Looking forward, the market participants are awaiting the final UK Services PMI data, hoping it will provide new insights. Simultaneously, they are closely monitoring critical US economic indicators, such as the ADP report on private-sector employment and the ISM Services PMI.

GBP/USD - Technical Analysis

On October 04, the GBP/USD trading trajectory has taken an intriguing turn. Presently, this currency pair is floating around the 1.20551 pivot point, reflecting the complexities and nuances of the international currency market. The significant technical levels to monitor in the short term include immediate resistance at 1.21071, followed by 1.21398 and 1.21878. Conversely, the asset has marked its immediate support level at 1.20041, with additional cushions positioned at 1.19537 and 1.18987.

From the perspective of chart patterns, the GBP/USD's movement is showing signs reminiscent of a Fibonacci retracement. The pair appears poised to bounce off the 1.2050 region, potentially aiming for the 23.6% Fibonacci retracement level at 1.2100 or the 38.2% level at 1.2137. This suggests that the GBP/USD might undergo a short-term bullish correction.

In conclusion, despite the overarching bearish sentiment for the GBP/USD pair, there seems to be potential for a bullish correction, particularly if the price sustains above the 1.2050 level. Traders might consider initiating buy orders above this threshold and explore selling options should this level be breached. As always, it's crucial to remain vigilant of any emerging fundamental news that could recalibrate the market landscape.

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