GBPUSD rises above 1.2550 as the US Dollar’s comeback stalls
The GBPUSD is projected to encounter resistance at 1.2600.
The pound is recouping some of its losses from Monday’s European session, while the US dollar is losing upside momentum. However, the larger bearish trend continues active. With investors remaining cautious ahead of critical UK data and major central bank announcements.
The US jobs report has bolstered the US Dollar.
The US job statistics last Friday bolstered the Dollar, with nonfarm payrolls exceeding estimates. And salaries expanding too quickly for the Federal Reserve to begin cutting rates in the coming months. This is likely to provide some relief to the United States. The dollar will fall in the future sessions.
The market will be focused on Tuesday’s UK employment statistics. And the US CPI ahead of the crucial Fed monetary policy meeting on Wednesday.
The Federal Reserve of the United States is likely to keep its key interest rate unchanged. The major draw of the event will be the MPC members’ interest rate projections and Powell’s press conference. Which will provide signals about any dovish move that might harm the US Dollar.
The Bank of England will maintain interest rates on hold on Thursday, with BoE Bailey anticipated to provide further information about the bank’s next actions.
Technical Outlook
GBPUSD recovers to face resistance at 1.2600.
The technical picture shows the pair gaining bullish momentum while remaining below the 1.2600 resistance, so negating the near-term corrective mood. and expose 1.2650 ahead of the previously reported 1.2730.
Supports on the downside include Friadau’s low of 1.2500 and the November 22 low of 1.2450.
