Fundamental Overview
The US Dollar’s strong performance is slowing despite recent higher-than-expected CPI and PPI reports. The market now reflects the Fed’s projections, removing the chances of aggressive rate cuts.
To boost the Dollar further, we need more strong US data. Key events in November will include October data, the FOMC policy decision, and the US election.
For the GBP, today’s UK CPI report missed expectations, leading to market predictions of a 25 bps cut in December.
GBPUSD Technical Analysis – Daily Timeframe
The daily chart shows GBPUSD bouncing from the 1.30 level after a drop due to the UK CPI report. Buyers are entering at this level, aiming for a rise back to 1.32, while sellers want a lower break to push bearish bets on the major trendline.
GBPUSD Technical Analysis – 4 Hour Timeframe
The 4-hour chart shows a clear bounce at 1.30 as buyers target the recent range high at 1.31. The market will likely trade within this range until a breakout occurs.
GBPUSD Technical Analysis – 1 Hour Timeframe
On the 1-hour chart, the price is near the bottom of today’s average daily range, indicating we may not see much lower today. The focus is on waiting for a breakout.
Upcoming Catalysts
Tomorrow features US Retail Sales and Jobless Claims data, followed by UK Retail Sales figures on Friday.
