- The GBP / USD forecast shows Caution in front of this week Meeting the Boe politics.
- The American economy added more than 177,000 new jobs in April.
- The tension between China and the US went in last week.
GBP / USD Forecast shows Caution in front of this week of the bank of England politics. However, the function remains stable near Lodge Hit on Friday after ruin the employment report in the United States. At the same time, in the last weeks at the same time in the middle of mitigating trade tensions between China and the US.
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Participants in the market are looking forward to meeting politics in England on Thursday, in which policies can voters may vote for reducing interest rates of 25-BPS. Some economists believe that Boe should consider faster pace to reduce rates. Trump tariffs blurred the appearance of the global economy. Therefore, economic growth in the UK will also suffer, pressing the central bank at lower rates.
In the meantime, the function fell on Friday after the United States left the recovery. The economy added 177,000 new jobs in April compared to predictions of 138,000 increases. Meanwhile, unemployment rate was held permanent to 4.2%. Trump escalated his tariffs in April. Therefore, some experts expected to see awful economic figures. However, the labor market remains resilient, justifying the federal attitude of Fed.
At the same time, tensions between China and the US last week have made it easier, allowing Greenback to recover lost shine. However, market participants are waiting for the agreement to end the current trade war.
GBP / USD Key events Today
GBP / USD Technical forecast: Medvedi testing equipment 1,3225 support
On the technical side, GBP / USD price trades below 30ths, and RSI is under 50, proposes bear bias. The bears recently reinforced enough to pierce 30 SMA after the previous Ustcraunda paid at the level of resilience at 1.3401.
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Here the bulls failed to maintain the move higher, allowing the price to drink below SMA. However, when supporting 1,3225 is approached, the bulls returned to make another resistance level attempt. The price broke above the resistance, but it was quickly rejected.
At the same time, although he made a higher high, RSI made lower, indicating a bear divergence. Shortly afterwards, the bears returned. Pause below support 1.3225 would confirm a new trend. Moreover, it would clear the way GBP / USD again set up 1,3000 key psychological level.
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