- GBP/USD rose 0.8% from low to high on Wednesday as markets lean towards rate cut bets.
- Markets anticipate an accelerated cycle of rate cuts from the Federal Reserve as soon as March.
- This week's economic data is sparse; Initial claims for unemployment benefits in the US will be published on Thursday.
GBP/USD rose on Wednesday as risk appetite in markets drove the US Dollar (USD) to a floor, boosting the British Pound (GBP). The pair rose more than three-quarters of a percentage point from Wednesday's low bids near 1.2700, to settle in the 1.2800 area heading into Thursday's trading session.
UK data is almost absent from this week's economic data agenda, with Nationwide House Prices for October being the only data representation for the Pound, scheduled for Friday.
US initial jobless claims will be the key data this week, with markets expecting a slight increase from 205,000 to 210,000 new jobless claimants for the week ending December 22, 5,000 more than The last week.
Broader markets' risk appetite continues to rise as investors lean toward bets that the Federal Reserve will be pushed into an escalating cycle of rate cuts, and many market participants are betting that cuts rates start already in March. The Fed's reversal on interest rates pinned investors' hopes on an accelerated pace of rate cuts, and multiple attempts by Fed officials to pour water on these expectations have had little effect. .
GBP/USD Technical Outlook
GBP/USD hit 19-week highs on Wednesday, and the pair is on track to close in the green eight of the last nine weeks of trading. The pair rebounded from the 50-hour SMA, while intraday action remains firmly focused on risk appetite, sending GBP to the ceiling near the 1.2800 area.
GBP/USD continues to rise on US Dollar weakness rather than Pound strength, rising more than 6% from the October low near 1.2040.
The 200-day SMA offers long-term technical support from 1.2525, and the next immediate challenge for Pound bulls, or Dollar bears in general, will be to get back above the 1.3000 zone.
GBP/USD Hourly Chart
GBP/USD Daily Chart
GBP/USD Technical Levels
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.
