The GBP/USD pair is currently trading below 1.3100, as buyers exercise caution amid uncertainty surrounding the Federal Reserve’s decision on interest rate cuts. If the pair manages to break above the 1.3100 level, it could target the year-to-date high of 1.3130 and potentially continue towards 1.3200. However, a close below 1.3100 for a second consecutive day may trigger a pullback, with potential support levels at 1.3010 and the August 13 peak at 1.2872.
Despite solid UK economic data, the Pound Sterling saw minimal gains against the US Dollar on Thursday, with the GBP/USD trading at 1.3097, up by 0.10%. The technical outlook for the GBP/USD pair suggests that buyers are hesitant to make substantial bets on further gains, given the uncertainty in the market. If the pair surpasses 1.3100 and breaks the YTD high of 1.3130, it could face resistance at the 1.3200 level. On the other hand, a close below 1.3100 for two consecutive days could lead to a pullback, potentially testing support levels at 1.3010 and 1.2872.
The daily chart for GBP/USD shows the recent price action of the pair, with key levels to watch for potential breakouts or pullbacks. The table below indicates the percentage change of the British Pound against major currencies, with the Pound being the strongest against the Japanese Yen on the day. The heat map displays the percentage changes of major currencies against each other, providing a visual representation of currency movements.
In conclusion, the GBP/USD pair remains below the 1.3100 level, with caution among buyers amid uncertainty surrounding the Fed’s interest rate cuts. A break above 1.3100 could target higher resistance levels, while a close below that level may trigger a pullback towards support levels. Traders should closely monitor key levels and market developments to make informed trading decisions.
