GBPUSD loses intraday gains amid negative market sentiment.
The GBPUSD pair gives up its intraday gains and falls back to about 1.2730 in Friday’s New York session. Furthermore The Cable is under pressure amid a cautious market sentiment. The S&P 500 opens with some losses, indicating that investors’ risk appetite is low.
The Federal Reserve appears to be on track to lower interest rates in September.
The US Dollar (USD) consolidates in a narrow range, with investors focusing on how much the Federal Reserve (Fed) would cut interest rates at its September meeting. Moreover According to the CME FedWatch tool, 30-day Federal Funds Futures pricing data suggest that traders There is a 56.5% possibility that interest rates will be cut by 50 basis points in September.
Going forward, the next trigger for the US Dollar will be the July Consumer Price Index (CPI) data, which will be released on Wednesday. Inflation figures will show whether price pressures are on track to return to the target rate of 2%.
The GBPUSD will be influenced by UK labour market and inflation data.
Pound Sterling will be influenced by the United Kingdom’s (UK) employment data for the three months ending July and consumer inflation data for July. Which will be released on Tuesday and Wednesday. Furthermore The economic data will help determine whether the Bank of England (BoE) will drop interest rates again in September.
Technical Outlook
The Cable is at a make or break below the critical figure. of 1.2700. On a daily basis, the major demonstrates a Positive divergence pattern. With the asset continuing to make higher lows while the momentum oscillator makes lower lows. This typically results in a return of the uptrend. But it should be validated with further signs.
Moreover The 14-day Relative Strength Index (RSI) shows a cushion near 40.00. Indicating buying activity at lower levels.
The asset’s 200-day Exponential Moving Average (EMA) is around 1.2650.
Furthermore If the asset falls below the intraday low of 1.2665, it may experience additional decline. This would expose the asset to the June 27 low of 1.2613 and the April 29 high of 1.2570.
Moreover On the flip side, a recovery move above the August 6 high of 1.2800 would Drive the asset to the August 2 high of 1.2840 and the round-level resistance of 1.2900.
