- Outlook GBP / USD shows a set in pounds because traders await key policy decisions.
- The dollar fell last week after the data has revealed an unexpected jump in unemployment claims.
- The Bank of England bred more cautious in the middle of a high inflation.
GBP / USD Outlook shows a set in pounds because traders awaiting US policy decisions and in the UK. After favorable employment data, Fed was set to cut rates for 25-BPS. Meanwhile, the English bank is likely to retain interest rates.
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The dollar fell last week after the data has revealed an unexpected jump in unemployment claims. It was the last nail in the coffin that pointed to the deterioration of the labor market that needs support. Meanwhile, inflation was a little hotter – from expected. However, it was not enough to moisten the expectations to reduce rates.
This week, traders will wait to see a tone during the meeting to determine future policy movements. If policy makers are more in question than expected, the dollar will collapse. Meanwhile, if they remain relatively careful in reducing rates, the American currency could recover.
On the other hand, the bank of England bred more cautious in the middle of a high inflation. As a result, traders expect policy makers to hold interest rates unchanged. This gives a pound of edge over most of its peers, especially the dollar. However, there is uncertainty regarding the financial health of Great Britain. Participants in the market are taken care of at the upcoming budget in November for traces in the country’s financial appearance.
GBP / USD Key events Today
Today, traders do not provide for any high-influence of economic issues. Therefore, he will look after the upcoming meetings of the Central Bank.
GBP / USD Technical Outlook: Bukovi reinforces above 1,3575
On the technical side, GBP / USD price is on the edge of closing above the level of resilience at 1.3575. Such an outcome would make a higher high, confirming the continuation of the previous Ustlands. Moreover, the price is traded above the 30ths, with RSI, which is approaching transmitting transmission, suggesting solid wetland swing.
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Initially, the price traded in the bical trend before pausting near the level of resilience at 13575. After this, I entered the corrective phase in which he cut through 30 SMA. However, the corrective move found support near Level 1,3350. After that, the bulls took over, pushing the price above the 30th and respecting it as support.
Pause above Level 1,3575 shows that the bulls are ready to continue the previous Usttrend. Therefore, GBP / USD would soon be re-set up higher resistance levels.
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