The GBP/USD Price Forecast shows that the Pound Sterling has consolidated around the 1.3000 mark due to a soft US Dollar. The currency pair reached over 1.3000 for the first time in five days following a US jobs report that raised expectations of rate cuts from the Federal Reserve in 2024. This has led to gains of over 0.21% in the GBP/USD trading at 1.2998.
After the release of the US JOLTS Job Openings data for September showing slower-than-expected growth in job vacancies, the Pound Sterling has gained against the US Dollar. This has pushed the GBP/USD pair closer to the psychological resistance level of 1.3000 in Tuesday’s North American session. With the US Dollar weakening, the Pound Sterling has seen a sharp rise in value.
Despite the recent gains, the GBP/USD Price Forecast indicates that bears have the upper hand as long as the currency pair remains below the 1.3000 mark. Fresh sellers have entered the market following a two-way price movement, causing the GBP/USD pair to slide closer to the mid-1.2900s during the Asian session on Tuesday. While spot prices have remained above the lowest level since August 16, they are still vulnerable to US Dollar price dynamics.
The focus now turns to various factors that may impact the GBP/USD pair, including the upcoming UK budget announcement. The Pound Sterling’s performance will likely be influenced by both domestic and international economic data, as well as geopolitical developments. Traders will closely monitor the US Dollar’s strength and any further indications of potential rate cuts from the Federal Reserve, which could impact the exchange rate between the Pound Sterling and US Dollar.
In the midst of market uncertainty, traders and investors are advised to closely monitor news events and economic data releases that may impact the GBP/USD pair. Keeping a close eye on key levels, such as the 1.3000 mark, will be crucial in determining future price movements. While the Pound Sterling has seen recent gains against the US Dollar, it remains vulnerable to fluctuations in the broader market and may face further challenges in maintaining its current momentum.
