In the world of forex trading, GBP/USD has taken a step back after a remarkable seven-day winning streak. The UK market flows were affected by an extended weekend, leading to thin Pound Sterling flows and giving the Greenback a boost. Investors are now eagerly waiting for meaningful data releases later in the week to guide their next moves.
Forex Today: US Data Releases to Determine September Rate Cut
With UK markets closed on Monday, the focus shifted to the upcoming US data releases. The Federal Reserve has hinted at potential rate cuts in September, pending any drastic changes in economic data. This week, all eyes will be on the Q2 US GDP figures and the July US core PCE inflation numbers, which could influence the Fed’s decision on interest rates.
Despite a positive outlook on the US economy, concerns remain about certain sectors, such as Durable Goods Orders. While the overall numbers showed growth, excluding transportation spending revealed a different story, raising questions about the economy’s strength.
GBP/USD Price Forecast
After a strong rally, GBP/USD is facing resistance at the 1.3200 level. Short sellers are looking to bring the pair down to the 50-day EMA at 1.2860, with further support near the 200-day EMA at 1.2700. The current overextension suggests a potential pullback in the near term.
GBP/USD Daily Chart
Pound Sterling FAQs
The Pound Sterling (GBP) is a key currency in the forex market, accounting for a significant portion of global transactions. Its value is influenced by various factors, including monetary policy decisions by the Bank of England and economic indicators such as GDP and trade balance. Understanding these factors is crucial for investors looking to trade GBP pairs.