GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate resistance at $1.3101, with the next key level at $1.3127.
- RSI at 53 suggests neutral momentum, leaving room for further upside.
- 50-day EMA at $1.3120 could serve as a key level for bullish confirmation.
The GBP/USD pair is trading higher at $1.31025, marking a 0.22% gain on the day as sterling continues to benefit from positive sentiment surrounding the UK economy.
The currency pair has been trading above key support levels, reflecting cautious optimism ahead of key economic data releases later in the week.
Key technical levels reveal immediate resistance at $1.3101, with the next barrier at $1.3127. Should bullish momentum persist, the pair could push towards $1.3170, representing a significant psychological resistance level.
On the downside, immediate support is located at $1.3012, with further support at $1.2976 and $1.2941, which could trigger bearish momentum if breached.
Technical indicators are pointing to a neutral-to-bullish outlook. The Relative Strength Index (RSI) is at 53, signaling that the market is neither overbought nor oversold, leaving room for further gains.
Meanwhile, the 50-day EMA sits at $1.3120, just above current price action, indicating that a break above this moving average could confirm a more sustained upward trend.
From a strategic perspective, traders may look to buy above $1.30726, targeting the pivot point at $1.31279 for potential profits. A stop-loss at $1.30435 is advised to mitigate downside risks, particularly if the pair retraces towards its support levels.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.30726
Take Profit – 1.31279
Stop Loss – 1.30435
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$553/ -$291
Profit & Loss Per Mini Lot = +$55/ -$29
GBP/USD Price Analysis – Sep 11, 2024
Daily Price Outlook
Despite weaker-than-expected UK economic data, the GBP/USD pair continued its upward momentum, holding steady around 1.3082 for the second day in a row on Wednesday.
The main driver behind this strength was a weakening US dollar, which has been under pressure from expectations of a dovish stance from the Federal Reserve.
Traders are adopting a cautious approach, choosing to stay on the sidelines and wait for the upcoming US consumer inflation figures before making any bold moves.
UK Economic Stagnation and Production Decline Raise Concerns for GBP Amid BoE Rate Cut Expectations
On the BOE front, the UK Office for National Statistics revealed that economic growth was stagnant in July, failing to meet expectations of a modest 0.2% increase. This marks the second consecutive month of flat growth.
Meanwhile, both UK Industrial and Manufacturing Production dropped unexpectedly during this period.
The slowdown in wage growth in the UK has further increased expectations for additional interest rate cuts by the Bank of England (BoE).
These disappointing figures put pressure on the British Pound (GBP) as investors anticipate that the BoE might lower rates to boost the economy. The combination of flat growth and shrinking production suggests a struggling economy, leading to a more cautious outlook for the GBP.
US Dollar Weakens Amid Dovish Fed Expectations; Upcoming CPI Report to Impact GBP/USD Performance
On the US front, the broad-based US dollar has experienced some selling after a three-day winning streak, partly due to expectations of a dovish Federal Reserve.
This shift provides support to the GBP/USD pair, helping it hold above 1.3110. Traders are currently cautious, opting to wait for the upcoming US consumer inflation figures before making any significant moves.
The US Consumer Price Index (CPI) report, set to be released soon, will be crucial in shaping market expectations for the Federal Reserve's decision on interest rates at their next meeting on September 17-18.
On the data front, the August US Consumer Price Index (CPI) is expected to rise by 0.2%, with the annual rate projected to slow from 2.9% to 2.6%, its lowest level since 2021.
The core CPI, which excludes food and energy, is also anticipated to increase by 0.2%, maintaining a year-over-year rate of 3.2%.
This report is likely to impact the demand for the US dollar and influence the performance of the GBP/USD pair.
GBP/USD- Technical Analysis
The GBP/USD pair is trading higher at $1.31025, marking a 0.22% gain on the day as sterling continues to benefit from positive sentiment surrounding the UK economy.
The currency pair has been trading above key support levels, reflecting cautious optimism ahead of key economic data releases later in the week.
Key technical levels reveal immediate resistance at $1.3101, with the next barrier at $1.3127. Should bullish momentum persist, the pair could push towards $1.3170, representing a significant psychological resistance level.
On the downside, immediate support is located at $1.3012, with further support at $1.2976 and $1.2941, which could trigger bearish momentum if breached.
Technical indicators are pointing to a neutral-to-bullish outlook. The Relative Strength Index (RSI) is at 53, signaling that the market is neither overbought nor oversold, leaving room for further gains.
Meanwhile, the 50-day EMA sits at $1.3120, just above current price action, indicating that a break above this moving average could confirm a more sustained upward trend.
From a strategic perspective, traders may look to buy above $1.30726, targeting the pivot point at $1.31279 for potential profits. A stop-loss at $1.30435 is advised to mitigate downside risks, particularly if the pair retraces towards its support levels.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD facing resistance at $1.3188; bearish outlook persists.
- RSI at 39 indicates oversold conditions, signaling potential further downside.
- Short positions recommended below $1.31413, with target profit at $1.30520.
The GBP/USD pair is currently trading at $1.31052, inching up by a modest 0.01%. However, the technical landscape suggests a bearish bias in the short term.
Immediate price action remains capped below the pivot point at $1.3142, with resistance stacking higher at $1.3188, $1.3227, and $1.3266.
As market sentiment weakens, the pair is struggling to gain momentum, particularly with a Relative Strength Index (RSI) of 39, indicating oversold conditions that could signal a potential continuation of downward movement.
The 50-day Exponential Moving Average (EMA) at $1.3154 reinforces the notion that the pair is facing resistance from broader market pressures.
A failure to close above this level in recent sessions has further solidified a bearish outlook, leaving the door open for potential tests of lower support levels.
On the downside, immediate support stands at $1.3089, with further levels at $1.3052 and $1.3011 providing a stronger safety net for potential declines.
Should the pair breach the immediate support at $1.3089, a swift move toward $1.3052 is highly probable, with a potential extended drop toward $1.3011 if bearish momentum intensifies.
Given the technical setup, the recommended strategy is to consider short positions below the pivot point at $1.31413. The target for taking profit is at $1.30520, with a stop-loss placed above immediate resistance at $1.31878, to mitigate potential upside risk.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.31413
Take Profit – 1.30520
Stop Loss – 1.31878
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$893/ -$465
Profit & Loss Per Mini Lot = +$89/ -$46
GBP/USD Price Analysis – Sep 09, 2024
Daily Price Outlook
The Pound Sterling (GBP) dropped below 1.3100 against the US Dollar on Monday, marking a fresh two-week low.
The GBP/USD pair faced selling pressure as the US Dollar Index (DXY) rose to 101.40, driven by diminishing expectations for aggressive rate cuts from the Federal Reserve (Fed).
The recent Nonfarm Payrolls (NFP) report showed mixed signals for the labor market, which tempered market hopes for a 50-basis-point rate cut in September.
According to the CME FedWatch Tool, the probability of such a cut has fallen to 27%, down from 41% before the release of August’s labor data.
While the report showed slower job growth, the Unemployment Rate ticked lower, and wage growth accelerated at 0.4%—strong enough to keep recession fears at bay.
This has bolstered the US Dollar, as the Fed is now less likely to ease aggressively, putting pressure on the Pound.
UK Employment Data in Focus
The focus for GBP/USD traders is now shifting to the UK labor market data set to be released on Tuesday. The report will provide critical insights into the Bank of England’s (BoE) future interest rate decisions.
According to estimates, the Unemployment Rate is expected to fall slightly to 4.1% from 4.2%, while Average Earnings Including Bonuses are forecast to soften to 4.1%, down from 4.5%.
The labor data could influence market speculation about the BoE’s next move, particularly if wage growth continues to decelerate.
Slower wage growth would ease inflationary pressures, especially in the services sector, potentially encouraging the BoE to consider further rate cuts to support the economy.
Additionally, a report from KPMG and the Recruitment and Employment Confederation (REC) showed that permanent job placements in the UK dropped at their fastest pace in five months, signaling a cooling labor market.
Pay growth for new hires also slowed, hitting a five-month low—one of the weakest readings since early 2021.
What to Expect from CPI Data
Looking ahead, the US Consumer Price Index (CPI) data for August, due on Wednesday, is expected to provide fresh cues on the Fed’s rate outlook.
The CPI is forecast to show 0.2% growth for both headline and core inflation, while annual headline inflation is expected to slow to 2.6%, down from 2.9% in July.
This inflation data will be crucial in shaping market expectations for Fed policy in the coming months. If inflation continues to cool, it could support the case for more moderate rate cuts, limiting further upside for the US Dollar.
GBP/USD - Technical Analysis
The GBP/USD pair is currently trading at $1.31052, inching up by a modest 0.01%. However, the technical landscape suggests a bearish bias in the short term.
Immediate price action remains capped below the pivot point at $1.3142, with resistance stacking higher at $1.3188, $1.3227, and $1.3266.
As market sentiment weakens, the pair is struggling to gain momentum, particularly with a Relative Strength Index (RSI) of 39, indicating oversold conditions that could signal a potential continuation of downward movement.
The 50-day Exponential Moving Average (EMA) at $1.3154 reinforces the notion that the pair is facing resistance from broader market pressures.
A failure to close above this level in recent sessions has further solidified a bearish outlook, leaving the door open for potential tests of lower support levels.
On the downside, immediate support stands at $1.3089, with further levels at $1.3052 and $1.3011 providing a stronger safety net for potential declines.
Should the pair breach the immediate support at $1.3089, a swift move toward $1.3052 is highly probable, with a potential extended drop toward $1.3011 if bearish momentum intensifies.
Given the technical setup, the recommended strategy is to consider short positions below the pivot point at $1.31413. The target for taking profit is at $1.30520, with a stop-loss placed above immediate resistance at $1.31878, to mitigate potential upside risk.
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GBP/USD Price Analysis – Sep 05, 2024
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its upward trend and performed strongly around 1.3168, reaching an intra-day high of 1.3172.
The British pound strengthened as the positive UK economic outlook boosted market expectations that the Bank of England's (BoE) policy-easing cycle might be shallower this year compared to other central banks.
Meanwhile, the US dollar weakened due to weaker-than-expected U.S. job data, which increased the likelihood of a significant interest rate cut by the Federal Reserve. This also supported the GBP/USD pair.
Looking ahead, traders are being careful as they wait for the important US Nonfarm Payrolls (NFP) report on Friday. Before that, they'll also pay attention to Thursday's US economic updates, including job reports from the ADP, Weekly Jobless Claims, and the ISM Services PMI.
GBP/USD Strengthens on Positive UK Economic Outlook and Fewer BoE Rate Cut Expectations
On the BoE front, the British Pound is gaining strength as the positive UK economic outlook suggests that the Bank of England’s (BoE) interest rate cuts may be less aggressive compared to other central banks.
The latest S&P Global/CIPS PMI data shows the UK economy grew at a faster pace in August, with both the manufacturing and services sectors expanding significantly. This marks the strongest growth since April, raising hopes for a more stable economic environment.
Financial markets now expect the BoE to cut interest rates just once this year. The central bank, which began shifting to a more neutral policy in August, is expected to keep rates steady at 5% this month, with a possible cut in November or December.
Meanwhile, the Pound's value will be influenced by market sentiment and speculation on rate cuts, especially as key UK economic reports are absent. Next week, investors will turn their attention to employment data for July and monthly GDP figures.
This news has boosted the GBP/USD pair, as expectations of fewer BoE rate cuts support the British Pound. Strong UK economic data strengthens the Pound, while market sentiment and upcoming employment and GDP reports could drive further movement.
GBP/USD Rises as Weak US Job Data Fuels Fed Rate Cut Expectations
On the US front, the broad-based US Dollar (USD) weakened as weak Job Openings data for July put pressure on the currency. The latest report showed that US job vacancies fell to 7.67 million, the lowest in over three-and-a-half years.
This signals a slowing job market, raising expectations that the Federal Reserve (Fed) may start cutting interest rates more aggressively. Market speculation now suggests a 41% chance that the Fed could reduce rates by 50 basis points in its September meeting, up from 34% a week ago.
Looking ahead, the US Nonfarm Payrolls (NFP) report for August, due on Friday, will be a key event that could impact the USD. In Thursday’s North American session, important data like the ADP Employment Change, ISM Services PMI, and Initial Jobless Claims will be in focus.
Therefore, this news has strengthened the GBP/USD pair, with the Pound rising above 1.3150 as the weaker US Dollar faces pressure from soft US job data. Increased expectations of Fed rate cuts further support the Pound's gains against the Dollar.
GBP/USD - Technical Analysis
The British Pound is facing downside pressure against the U.S. Dollar as it struggles below the key resistance level of $1.31673, which is reinforced by the 50-day Exponential Moving Average (EMA). GBP/USD has formed a lower high at $1.31880, signaling potential weakness.
The immediate support at $1.30891 is being closely watched, as a break below this level could trigger further downside towards $1.30523. The pair is currently in a consolidation phase, with the RSI at 45.15, which indicates there’s room for the price to slide lower before reaching oversold territory.
The descending trendline from previous highs continues to act as resistance near $1.31673, and any failure to break above this could attract sellers. A confirmed bearish break below $1.30891 might lead to a retest of the psychological level at $1.30111. Meanwhile, bulls should be cautious as any upside movement remains capped by resistance near the $1.31880 zone.
The pair remains bearish below the pivot point at $1.31517, with a possible downside target at $1.30891. A failure to hold above $1.31517 suggests potential weakness in the short term.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD remains bearish below the $1.31673 resistance level.
- A break below $1.30891 could lead to further downside to $1.30523.
- RSI at 45.15 suggests additional selling pressure is likely.
The British Pound is facing downside pressure against the U.S. Dollar as it struggles below the key resistance level of $1.31673, which is reinforced by the 50-day Exponential Moving Average (EMA). GBP/USD has formed a lower high at $1.31880, signaling potential weakness. The immediate support at $1.30891 is being closely watched, as a break below this level could trigger further downside towards $1.30523. The pair is currently in a consolidation phase, with the RSI at 45.15, which indicates there’s room for the price to slide lower before reaching oversold territory.
The descending trendline from previous highs continues to act as resistance near $1.31673, and any failure to break above this could attract sellers. A confirmed bearish break below $1.30891 might lead to a retest of the psychological level at $1.30111. Meanwhile, bulls should be cautious as any upside movement remains capped by resistance near the $1.31880 zone.
The pair remains bearish below the pivot point at $1.31517, with a possible downside target at $1.30891. A failure to hold above $1.31517 suggests potential weakness in the short term.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.31517
Take Profit – 1.30891
Stop Loss – 1.31878
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$626/ -$361
Profit & Loss Per Mini Lot = +$62/ -$36
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD hovers near a critical pivot point of $1.31620, leaning towards the bearish side.
- RSI at 39 suggests rising bearish momentum, but there is room before oversold conditions.
- A break below $1.31218 could drive the pair lower toward $1.30410, with support levels in focus.
The GBP/USD pair is trading at $1.31136, with a modest gain of 0.01%. Currently, the pair is hovering near a crucial pivot point at $1.31620, signaling potential indecision in the market.
The 50-day Exponential Moving Average (EMA) rests at $1.31695, just above the current price level, reinforcing the significance of the resistance at $1.31880. A break above this resistance could open the door for gains toward $1.32269, but for now, the downside appears to dominate the outlook.
The Relative Strength Index (RSI) is at 39, suggesting that bearish momentum is gaining strength, but it is not yet in oversold territory. If the pair breaks below the immediate support at $1.31218, we could see a test of lower levels, with the next support sitting at $1.30784. Further declines may push GBP/USD toward $1.30410 and $1.30111, which will be key areas for bulls to defend.
For today, the key battle lies around the $1.31620 pivot. A failure to break this level would likely result in a bearish continuation, with selling pressure intensifying if $1.31218 is breached. On the upside, a break above $1.31880 could trigger a bullish reversal, but the pair remains constrained by the broader downward trend.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.31218
Take Profit – 1.30649
Stop Loss – 1.31504
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$569/ -$286
Profit & Loss Per Mini Lot = +$56/ -$28
GBP/USD Price Analysis – Sep 04, 2024
Daily Price Outlook
During the European trading session, the GBP/USD pair remained subdued around the 1.3112 level as market sentiment weakened amidst rising uncertainty ahead of the release of the US Nonfarm Payrolls (NFP) data for August, due on Friday. Despite growing speculation that the Bank of England (BoE) will implement a shallower policy-easing cycle for the remainder of the year compared to other central banks, the British currency struggles to gain strength.
British Pound Weakens Despite Improving UK Economy and BoE Rate Cut Expectations
On the BoE front, the British Pound is struggling against major currencies. Despite speculation that the Bank of England (BoE) will ease its monetary policy only slightly for the rest of the year, the Pound remains weak.
Market expectations indicate the BoE might cut interest rates by 40 basis points (bps) this year. In comparison, the European Central Bank (ECB) is expected to cut rates by 65 bps, and the Federal Reserve (Fed) is projected to lower its rates by 100 bps.
Consequently, the UK economy is showing signs of improvement, with better-than-expected performance in manufacturing and services. The final S&P Global/CIPS Composite PMI for August was revised up to 53.8, surpassing the preliminary figure of 53.4.
This suggests that the UK economy is growing at its fastest pace since April. Despite this positive news, the Pound’s performance remains subdued, reflecting a cautious outlook on the BoE’s gradual approach to policy easing.
GBP/USD Pressured by US NFP Uncertainty and Fed Rate Cut Speculation
On the US front, the GBP/USD pair is struggling as market uncertainty grows ahead of the US Nonfarm Payrolls (NFP) data for August, due on Friday. S&P 500 futures have dropped further, showing decreased risk appetite among investors, while the US Dollar Index (DXY) slightly corrects to around 101.60.
The NFP report is crucial because it will influence expectations about the Federal Reserve's interest rate decisions in September. While the Fed is expected to adjust its policy this month, there's debate over whether it will cut rates significantly or take a more gradual approach.
If the NFP data shows a slowdown in job growth and higher unemployment, expectations for a 50 basis point (bps) rate cut by the Fed will likely rise. Fed Chair Jerome Powell has indicated support for the labor market if it worsens. Conversely, if the job data is steady or better than expected, hopes for a large rate cut may weaken.
Investors will also watch the US JOLTS Job Openings for July and the Fed’s Beige Book for more clues on the labor market, with job openings anticipated to decrease slightly from June.
Therefore, the uncertainty around the US NFP data and potential Federal Reserve rate cuts is likely to keep the GBP/USD pair under pressure. Weak job data could boost the Dollar due to expectations of aggressive Fed cuts, while strong data might weaken the Pound further.
GBP/USD - Technical Analysis
The GBP/USD pair is trading at $1.31136, with a modest gain of 0.01%. Currently, the pair is hovering near a crucial pivot point at $1.31620, signaling potential indecision in the market.
The 50-day Exponential Moving Average (EMA) rests at $1.31695, just above the current price level, reinforcing the significance of the resistance at $1.31880. A break above this resistance could open the door for gains toward $1.32269, but for now, the downside appears to dominate the outlook.
The Relative Strength Index (RSI) is at 39, suggesting that bearish momentum is gaining strength, but it is not yet in oversold territory. If the pair breaks below the immediate support at $1.31218, we could see a test of lower levels, with the next support sitting at $1.30784. Further declines may push GBP/USD toward $1.30410 and $1.30111, which will be key areas for bulls to defend.
For today, the key battle lies around the $1.31620 pivot. A failure to break this level would likely result in a bearish continuation, with selling pressure intensifying if $1.31218 is breached. On the upside, a break above $1.31880 could trigger a bullish reversal, but the pair remains constrained by the broader downward trend.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Bias: GBP/USD is under pressure below the $1.3156 pivot, with the RSI at 40 indicating further downside risk.
- Resistance Levels: Immediate resistance is seen at $1.3188, with additional targets at $1.3227 and $1.3265.
- Support Levels: Key support is found at $1.3119, followed by $1.3078 and $1.3041.
The GBP/USD pair is currently trading at $1.31347, showing a slight uptick of 0.02% in early trading.
The currency pair is hovering just below the pivotal $1.3156 level, which serves as a crucial point in determining the next directional move.
The 4-hour chart indicates that the pair faces immediate resistance at $1.3188, which aligns closely with the 50-day Exponential Moving Average (EMA).
A break above this level could push the pair towards the next resistance levels at $1.3227 and $1.3265.
On the downside, GBP/USD finds immediate support at $1.3119, with further support levels at $1.3078 and $1.3041.
The Relative Strength Index (RSI) is currently at 40, signaling that the pair is leaning towards a bearish trend, but is not yet in oversold territory.
This suggests that there could be more room for downside movement if the pair fails to hold above the key pivot point at $1.3156.
Given the current technical setup, traders might consider short positions below $1.3156, with a potential target around $1.3111.
Conversely, a break above $1.3188 would likely invalidate this bearish outlook, potentially setting the stage for a rally towards the $1.3227 level and beyond.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.31556
Take Profit – 1.31111
Stop Loss – 1.31865
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$445/ -$309
Profit & Loss Per Mini Lot = +$44/ -$30
GBP/USD Price Analysis – Sep 02, 2024
Daily Price Outlook
During the early European trading session, the GBP/USD currency pair reversed its downward trend and turned bullish at around the 1.3135 level, reaching an intra-day high of 1.3146.
This upward movement is largely attributed to renewed selling pressure on the US dollar. The USD is under pressure due to increased market optimism and growing expectations of a dovish stance from the US Federal Reserve (Fed).
Meanwhile, the Bank of England (BoE) is anticipated to gradually lower interest rates later this year, which could support the Pound Sterling (GBP).
Investors are now focusing on upcoming economic data, including the US ISM Manufacturing PMI on Tuesday and the Nonfarm Payrolls report on Friday. These reports will be key for traders looking to gauge potential market impacts.
Impact of Fed Rate Cut Expectations and PCE Data on GBP/USD Pair
On the US front, the US dollar is facing renewed bearish pressure due to growing market optimism and increasing expectations that the Federal Reserve (Fed) might adopt a more dovish stance.
According to the CME FedWatch Tool, there is a 70% chance that the Fed will cut rates by at least 25 basis points at its September meeting.
However, the recent economic reports have led traders to rethink the likelihood of a significant rate cut by the Fed in September.
On the data front, July's Personal Consumption Expenditures (PCE) Index data showed a 2.5% increase year-over-year, matching the previous month’s reading but falling short of the 2.6% forecast.
Additionally, the core PCE Index, which excludes food and energy, rose by 2.6% year-over-year in July, consistent with the prior figure but slightly below the expected 2.7%.
These figures suggest that while inflation remains steady, it may not be weak enough to prompt a more aggressive rate cut by the Fed.
Therefore, the bearish US dollar and mixed PCE data could support the GBP/USD pair. However, the weaker dollar and uncertainty around aggressive Fed rate cuts might boost the GBP, leading to potential gains for the GBP/USD pair.
BoE's Gradual Rate Cuts Support GBP/USD Amid Cautious Approach
Another factor that has been boosting the GBP/USD pair is the Bank of England's (BoE) plan to gradually lower interest rates for the rest of the year.
This move is expected to support the Pound Sterling (GBP) and help it maintain its position in the market.
At the recent Jackson Hole Symposium, BoE Governor Andrew Bailey mentioned that the impact of inflationary pressures would be less severe than previously thought.
However, Bailey also cautioned against rushing into further rate cuts too quickly. This balanced approach aims to stabilize the GBP while managing inflation concerns.
According to Reuters, the BoE is taking a careful approach to ensure that any changes in interest rates are well-measured and do not negatively affect the economy.
GBP/USD - Technical Analysis
The GBP/USD pair is currently trading at $1.31347, showing a slight uptick of 0.02% in early trading. The currency pair is hovering just below the pivotal $1.3156 level, which serves as a crucial point in determining the next directional move.
The 4-hour chart indicates that the pair faces immediate resistance at $1.3188, which aligns closely with the 50-day Exponential Moving Average (EMA). A break above this level could push the pair towards the next resistance levels at $1.3227 and $1.3265.
On the downside, GBP/USD finds immediate support at $1.3119, with further support levels at $1.3078 and $1.3041.
The Relative Strength Index (RSI) is currently at 40, signaling that the pair is leaning towards a bearish trend, but is not yet in oversold territory. This suggests that there could be more room for downside movement if the pair fails to hold above the key pivot point at $1.3156.
Given the current technical setup, traders might consider short positions below $1.3156, with a potential target around $1.3111.
Conversely, a break above $1.3188 would likely invalidate this bearish outlook, potentially setting the stage for a rally towards the $1.3227 level and beyond.
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