Fundamental Overview
The US Dollar’s upward momentum is slowing, even after recent strong CPI and PPI reports. The market now aligns with the Fed’s rate expectations, eliminating aggressive rate cut predictions.
More strong US data is needed to hint at a potential pause in the Fed’s rate cuts, which could support the US Dollar further. Key events in November include the release of October data, the FOMC policy decision, and the US election.
The latest UK CPI report showed disappointing results, leading to expectations of a 25 basis point rate cut in December.
GBPUSD Technical Analysis – Daily Timeframe
GBPUSD is bouncing off the 1.30 level after a quick decline following the UK CPI report. Buyers are looking to push prices back to 1.32, while sellers wish for a drop below this level.
GBPUSD Technical Analysis – 4 hour Timeframe
The 4-hour chart shows a bounce at the 1.30 handle, with buyers aiming for the recent high around 1.31. The market will likely remain range-bound until a breakout occurs.
GBPUSD Technical Analysis – 1 hour Timeframe
The 1-hour chart indicates that the price has hit the lower limit of today’s average daily range, making lower prices today unlikely. The focus now is on a potential breakout.
Upcoming Catalysts
Tomorrow, the US will release Retail Sales and Jobless Claims data, followed by the UK Retail Sales figures on Friday.
