The GBP/USD pair saw a slight recovery on Wednesday, gaining 0.25% as a result of broad-market risk flows pushing down the US Dollar. Despite this bounce, Cable continues to face resistance at familiar levels and remains below the 1.3100 handle.
Looking ahead, the UK economic calendar for the rest of the week is light on high-impact data releases, leaving GBP traders dependent on overall market sentiment towards the US Dollar.
US JOLTS Job Openings data for July fell short of expectations, with 7.673 million available jobs compared to the forecasted 8.1 million. As the Federal Reserve is expected to start cutting interest rates in September, market expectations are leaning towards a 50 bps rate cut. The upcoming US Nonfarm Payrolls (NFP) report on Friday will be crucial in setting the tone for market expectations regarding the depth of the rate cut.
GBP/USD Price Forecast
Despite a bounce on Wednesday, Cable remains below multi-month highs and is currently hovering around the 1.3100 level. The pair remains in a bullish trend above the 200-day Exponential Moving Average (EMA) at 1.2725, with the immediate downside target for shorts being the 50-day EMA just above 1.2900.
GBP/USD Daily Chart
The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. It is the fourth most traded currency in the world, with key trading pairs including GBP/USD, GBP/JPY, and EUR/GBP. The value of the Pound Sterling is influenced by monetary policy decisions, economic data releases, and the Trade Balance indicator.