- The GBP / USD forecast is neutral after moving Seesav below 1,3300.
- Trading US-China talks remain rotary agile participants.
- The UK BIDP forecast forecast provides support to the FUNT.
The GBP / USD forecast remains neutral above the middle of 1,3200 during the London Session Friday, Paring Intradai Losses. Greenback was alleviated after a sharp gathering on the Asian session.
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The dollar index (DKS) increased to 100.75 on Thursday due to optimism that was conducted by trade development. The initial spike in the US dollar followed the announcement of the trade agreement in the UK. It is the first agreement under the trumpet from the liberation day. Although the agreement had a symbolic significance, its economic implications are limited because they are now in a surplus with the Great Britain.
Markets now pay attention to US China Trade Talks in Planned 10. May in Switzerland. The American Minister of Finance Scott Bessent and the Trade Representative Greer will meet with his Chinese colleagues to facilitate trade tension. The US Secretary also expressed hopes to escape tariff tension.
The British pound has found support despite the initial weakness of domestic factors. The Bank of England reduced 25 BPS rates to 4.25% with 7-2 votes. The two members are not favored by any changes, while two other members have advocated 50 BPS.
The forecast of GDP in the UK was also revised from 0.75% to 1.0% of Boe. The Central Bank also maintained a cautious approach for the future reduction in rates. These factors helped pounds in pausing her side against most of their currencies.
On the other hand, Fed decided to rate unchanged at 4.25% -4.50% for the third consecutive meeting. The President Powell warned of inflation risks due to tariff measures. He also noticed that lasting trade barriers could lead to stagflation.
We look forward to, GBP / USD Traders will watch the development of events around the American store compared to the weekend and accompanying comments from central banks. All signs of de-escalation can further switch the momentum in the pair.
GBP / USD Technical forecast: Neutral after recovery
The 4-hour chart shows a mixed scenario. The price has grown previous low and support at 1,3225, but managed to regain above the level. It shows a slight weakness that prevails in pairs. The RSI also rose from the covered area, but remains in the sales zone.
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The 30-period remains above the price that also points to the bear pressure. However, the SMA can attract a significant return.
The immediate obstacle lies in 1,3300, forward from 1,3330. On the other hand, 1,3225 and 1,3200 are potential levels of support.
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