- The GBP/USD pair hits a nine-week high at 1.2517, currently trading above the 1.2500 level, marking a gain of over 0.30% in the North American mid-session.
- There is speculation that the Bank of England has concluded the tightening of its monetary policy, since the probabilities in the markets indicate a probability of less than 10% of a rate hike and a rate cut is anticipated. rates for June 2024.
- GBP/USD Technical Outlook: Could test 1.2700 if it sees a daily close above 1.2700; Otherwise, a pullback towards 1.2400 is expected.
The pair GBP/USD updates nine-week highs at 1.2517 and gains more than 0.30% in the North American mid-session, after hitting a daily low at 1.2446. At the time of writing, the GBP/USD pair is trading above 1.2500, keeping the bullish bias intact.
Pound advances as market participants await BoE Bailey speech
A thin economic calendar on both sides of the Atlantic would leave GBP/USD traders awaiting a speech from Bank of England (BoE) Governor Andrew Bailey, which is not expected to move the needle as there is speculation that The BoE has finished tightening its monetary policy. The chances of a rate hike are less than 10%, while the first rate cut is scheduled for June 2024.
On the fiscal front, British Prime Minister Rishi Sunak declared that the Government would reduce taxes following falling inflation, ahead of the publication of the UK’s autumn budget. British Chancellor of the Exchequer Jeremy Hunt is expected to announce how he will accelerate a stagnating economy. Mr Hunt added: “We are planning a series of measures to boost business investment.”
On the US front, the Conference Board (CB) revealed that the leading index fell -0.8% versus -0.7%, more than expected. Report that the economy is slowing, as deteriorating consumer and business conditions, along with the decline in the ISM new orders index, paint a bleak economic picture.
The speech of the Governor of the BOE, Andrew Bailey, stands out on the economic agenda of the week. On Tuesday, the Chicago Fed’s national activity index, along with existing home sales, will shed some light on the state of the US economy.
GBP/USD Price Analysis: Technical Outlook
The daily chart shows the pair with a bullish bias, and GBP/USD buyers are expected to test the September 11 high at 1.2548, before 1.2600. Once broken, the next stop would be the August 30 high at 1.2746. On the other hand, the pair could suffer a pullback if GBP/USD fails to overcome the 1.2500 signal. Therefore, the pair could head lower and test the 200-day moving average (DMA) at 1.2446 before dipping towards 1.2400. Once broken, the next stop would be the November 17 low at 1.2374.
|Latest price today||1.2504|
|Daily change today||0.0043|
|Today’s daily variation||0.35|
|Today’s daily opening||1.2461|
|Previous daily high||1.2462|
|Previous daily low||1.2374|
|Previous weekly high||1.2506|
|Previous weekly low||1.2213|
|Previous Monthly High||1.2337|
|Previous monthly low||1.2037|
|Daily Fibonacci 38.2||1.2429|
|Fibonacci 61.8% daily||1.2408|
|Daily Pivot Point S1||1.2402|
|Daily Pivot Point S2||1.2344|
|Daily Pivot Point S3||1.2314|
|Daily Pivot Point R1||1.2491|
|Daily Pivot Point R2||1.2521|
|Daily Pivot Point R3||1.2579|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.