GBP/USD is trading near 1.34000, and the pair remains sensitive to interest-rate expectations and fresh macro data from the UK and the US. During a shortened week, investors are reducing risk, closely watching US releases on growth and consumer sentiment, which can reshape expectations for the Fed’s next steps.
The fundamental backdrop for the pound is complicated by the fact that the Bank of England cut the policy rate to 3.75% at its latest meeting, with a very close vote, and signaled that future decisions will be taken “meeting by meeting.” The regulator aims to bring inflation back to target, but softer economic momentum and a cooling labor market fuel the debate about supporting demand.
If upcoming UK growth readings confirm a slowdown, the market may price in a more accommodative rate path, lowering the pound’s appeal. At the same time, the US continues to show signals that rates could be held steady for several months, especially if inflation declines more slowly than expected. This combination increases the likelihood of a stronger dollar and pressure on GBP/USD.
Trading recommendation: SELL 1.33950, SL 1.34250, TP 1.33050
The fundamental backdrop for the pound is complicated by the fact that the Bank of England cut the policy rate to 3.75% at its latest meeting, with a very close vote, and signaled that future decisions will be taken “meeting by meeting.” The regulator aims to bring inflation back to target, but softer economic momentum and a cooling labor market fuel the debate about supporting demand.
If upcoming UK growth readings confirm a slowdown, the market may price in a more accommodative rate path, lowering the pound’s appeal. At the same time, the US continues to show signals that rates could be held steady for several months, especially if inflation declines more slowly than expected. This combination increases the likelihood of a stronger dollar and pressure on GBP/USD.
Trading recommendation: SELL 1.33950, SL 1.34250, TP 1.33050
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.