- GBP / USD Outlook is improving despite the cut boa-this reduction.
- Voting on the MPC has been in favor of reducing the rate of 5-4 divisions.
- Macroeconomic data in the UK can limit the potential of upside down
GBP / USD Outlook has improved significantly because the price complains the lever 1,3400 after the decision on God. The price is 0.56% during the day, close to 1.3410, at the time of writing.
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The English bank reduced the rates for 25 BPS, as he was widely expected, making the fifth in this facilitation cycle, because the economy is largely struggling with the slowing growth, unemployment and persistent inflation.
Nine members of the Monetary Policy Committee voted for a majority of 5-4 to reduce rates of 4.25% to 4.0%. MPC said, “In the last two and a half years, there is significant disinfulation, after previous external shocks, supported by a restrictive attitude of monetary policy. This progress has allowed to reduce reduction in the initial year.”
Recent economic data have discovered a poor state of economic recovery because business trust and consumer consumers are under pressure. Employment data in July also show slow salary growth and growing unemployment. Trumps Renewed Tariffs are also a recessed consumer and business as global trading and invented costs disturbed.
Despite the macroeconomic weakness, inflation remains stubbornly high. The CPI in the UK is 3.6% I / I, which is well above 2% of the meta of the Central Bank.
GDP growth in the UK was settled, harmonized with gradual cooling of the labor market. The economy seems to have a margin of downtime. Although the uncertainty of trade policy has been partially reduced, geopolitical and domestic risks remain careful.
Participants in the market are currently in high probability that another decrease rate is 2025. year, potentially reducing the base rate at 3.75%.
GBP / USD Technical Outlook: Bullish above 1,3400
GBP / USD 4-hour chart shows a solid recovery with five consecutive bull candles, testing support for support above 1,3400 brand. The couple leads around the 20-period SMA, does not show obvious bias. 1,3500 marks near the 100-day Maze can be tested if the price succeeds in cleaning the current resistance. The RSI also shows a neutral view such as level close to 50.0. However, the indicator shows sharply upside down from the excessive zone, indicating potential for more upside down.
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On the flip side, closing below area 1,3400 can collect concerns with customers, and in case of continuing the upside down dollar, a couple could test today’s lower than 1,3345.
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