Daily Price Outlook

The GBP/USD pair experienced a pronounced downtrend yesterday, successfully reaching our anticipated target of 1.2400 and currently hovering around this mark. We anticipate further potential decline, with the next significant target positioned at 1.2310.

This bearish outlook remains dominant, reinforced by the EMA50 which exerts downward pressure on the price. It's imperative to note that for the bearish momentum to persist, the price should remain below 1.2505. Today's projected trading range lies between a support level of 1.2320 and a resistance level of 1.2480.

GBP/USD - Trade Idea 

Entry Price – Sell Below 1.24516

Take Profit – 1.23734

Stop Loss – 1.25092

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$782/ -$576

Profit & Loss Per Micro Lot = +$78/ -$57

Daily Price Outlook

The GBP/USD currency pair has decisively breached the 1.2505 mark, evidenced by its recent daily close beneath this threshold. This move aligns with the bearish trajectory outlined within the analytical chart's bearish channel. Subsequent targets are delineated at 1.2400, extending further to 1.2310.

Given this context, a bearish orientation is anticipated for today's trading session, bolstered by the negative influence exerted by the 50-day Exponential Moving Average (EMA50). However, it's crucial to note that any ascent past the 1.2505 level, if sustained, might negate the current bearish perspective, paving the way for potential recuperative actions. For today, the projected trading spectrum spans from a support boundary of 1.2390 to a resistance cap of 1.2540.

GBP/USD - Trade Idea 

Entry Price – Sell Limit 1.24796

Take Profit – 1.24007

Stop Loss – 1.25411

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$789/ -$615

Profit & Loss Per Micro Lot = +$78/ -$61

Daily Price Outlook

The GBP/USD currency pair failed to extend its previous day's gains and lost some of its traction in response to disappointing UK GDP data. As of now, the pair is down 0.14% on the day, trading at 1.2466. Furthermore, the ongoing strength of the US dollar has also played a major role in undermining the GBP/USD currency pair. Moreover, the GBP/USD currency pair faced some additional downward pressure due to expectations that the Bank of England (BoE) is approaching the conclusion of its rate-hiking cycle.

UK Economic Data and Its Impact on GBP/USD

According to the latest data from the Office for National Statistics (ONS), the UK's economy contracted by 0.5% in July, following a 0.5% growth in June. This was worse than the expected 0.2% decline. On another note, the Index of Services for July showed a 0.1% increase in a 3-month period, beating the estimated -0.1% and matching the previous month's performance.

As a result of this news, the GBP/USD pair is experiencing further losses. Currently, it's down 0.14% for the day, trading at 1.2466 marks.

On the other side, the UK's industrial sector slowed in July. Manufacturing output fell 0.8% MoM, beating expectations, but total industrial output was down 0.7%. Annually, manufacturing production exceeded expectations at 3.0%, while total industrial output slightly missed predictions at 0.4%. The UK's goods trade balance improved to GBP-14.064 billion, and the total trade balance (non-EU) was GBP-2.361 billion for July, an improvement from June.

Therefore, the information of a slowing UK industrial sector, despite some positive aspects, put downward pressure on the GBP/USD pair, contributing to its decline.

Fed's Policy Outlook and Its Impact on GBP/USD

Across the ocean, the Federal Reserve (Fed) is expected to take a break at its upcoming meeting, but there's still a chance of one more 0.25% rate hike this year. Recent positive US economic data suggests a strong economy and ongoing inflation could support higher rates. However, the focus is now on the US CPI report for hints on future rate hikes. Meanwhile, the possibility of higher US rates keeps Treasury bond yields up, benefiting the safe-haven US Dollar. This, coupled with market caution, limits significant gains for the GBP/USD pair.

GBP/USD - Technical Analysis

The GBP/USD currency pair has decisively breached the 1.2505 mark, evidenced by its recent daily close beneath this threshold. This move aligns with the bearish trajectory outlined within the analytical chart's bearish channel. Subsequent targets are delineated at 1.2400, extending further to 1.2310.

Given this context, a bearish orientation is anticipated for today's trading session, bolstered by the negative influence exerted by the 50-day Exponential Moving Average (EMA50). However, it's crucial to note that any ascent past the 1.2505 level, if sustained, might negate the current bearish perspective, paving the way for potential recuperative actions. For today, the projected trading spectrum spans from a support boundary of 1.2390 to a resistance cap of 1.2540.

Daily Price Outlook

The GBP/USD pair is revisiting the 1.2505 mark. Recent higher lows observed indicate a potential ascent in the upcoming trading sessions. If the pair exceeds the aforementioned level, it is poised to approach 1.2625.

Today's outlook is inclined towards a bullish trend, bolstered by favorable indications from the stochastic oscillator. It's important to note, however, that if the pair cannot surpass the 1.2505 threshold, it might revert to its predominant bearish trajectory with an aim towards 1.2395.

We project the GBP/USD's trading spectrum for the day to span between a 1.2430 support and a 1.2590 resistance. The day's anticipated trend is bullish.

GBP/USD - Trade Idea 

Entry Price – Buy Above 1.25117

Take Profit – 1.25735

Stop Loss – 1.24606

Risk to Reward – 1: 1.21

Profit & Loss Per Standard Lot = +$618/ -$511

Profit & Loss Per Micro Lot = +$61/ -$51

Daily Price Outlook

During the Asian trading session on Monday, the GBP/USD currency pair managed to recover from a three-month low. However, the recovery was driven by a modest decline in the US dollar, which had previously reached a multi-month high. The British pound gained strength against the US dollar because the dollar weakened slightly, prompting traders to place strong position.

Hawkish BoJ Comments and Mixed Chinese Data Impacting GBP/USD

It is worth noting that the Bank of Japan's (BoJ) Governor Kazuo Ueda made some hawkish remarks over the weekend, boosting demand for the Japanese Yen (JPY) and putting pressure on the US Dollar (USD). Additionally, a positive vibe in the stock markets pulled the safe-haven US dollar away from its highest level since March, which supported the GBP/USD pair.

Over the weekend, data showed that China's consumer prices rose in August, and the Producer Price Index decline slowed down. This suggests that China's economy might be stabilizing after a rough patch this year. Investors are also hopeful for more stimulus from China. However, some indicators show that China's manufacturing is still struggling, and the growth in the services sector is slowing down. This mixed economic picture could temper market optimism.

Hence, the hawkish BoJ comments boosted the Japanese Yen and pressured the US Dollar, aiding the GBP/USD pair.

Central Bank Actions Impacting GBP/USD

Across the ocean, the belief that the Federal Reserve (Fed) will stick to its tougher stance is likely to restrain the US Dollar's fall and limit GBP/USD gains. Market players think the Fed will keep interest rates high for a while. Some officials even suggest raising rates more than needed, boosting US Treasury bond yields and supporting the USD.

Meanwhile, Bank of England (BoE) Governor Andrew Bailey warned about ongoing high inflation, hinting at more rate hikes. However, he also hinted that the BoE might be close to stopping rate hikes. This may hinder any significant rise in GBP/USD, at least for now.

GBP/USD - Technical Analysis

The GBP/USD pair is revisiting the 1.2505 mark. Recent higher lows observed indicate a potential ascent in the upcoming trading sessions. If the pair exceeds the aforementioned level, it is poised to approach 1.2625.

Today's outlook is inclined towards a bullish trend, bolstered by favorable indications from the stochastic oscillator. It's important to note, however, that if the pair cannot surpass the 1.2505 threshold, it might revert to its predominant bearish trajectory with an aim towards 1.2395.

We project the GBP/USD's trading spectrum for the day to span between a 1.2430 support and a 1.2590 resistance. The day's anticipated trend is bullish.

Daily Price Outlook

The GBP/USD pair has distinctly extended its downward movement, decisively surpassing our initial target of 1.2625 and settling beneath it. This move solidifies the dominance of the bearish trend both in intraday and short-term scenarios, following the evident bearish channel depicted on the chart. Our subsequent target is set at 1.2505. The projected trading boundaries for today are a support at 1.2500 and a resistance at 1.2660.

The EMA50 consistently reinforces the anticipated bearish momentum. This prediction stands as long as the pair doesn't breach the 1.2625 level and sustain above it.

Consequently, our analysis remains bearish for both the intraday and short-term, driven by the downward force exerted by the EMA50. A breach and a subsequent stabilization above 1.2625 could initiate potential recovery endeavors, with an initial aim at the 1.2625 zone.

GBP/USD - Trade Idea

Entry Price – Buy Above 1.25926

Take Profit – 1.26571

Stop Loss – 1.25543

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$645/ -$383

Profit & Loss Per Micro Lot = +$64/ -$38

Daily Price Outlook

The GBP/USD currency pair held above 1.2600 during the early European session, trading at 1.2612 with a 0.17% gain. Buyers showed interest above 1.2600. However, US Nonfarm Payrolls for August exceeded expectations, and Manufacturing PMI improved to 47.6. On the other hand, the UK's Manufacturing PMI dropped from 45.3 in July to 43.0 in August. This led to speculation that the Federal Reserve might stop raising interest rates, weakening the US dollar. Consequently, the GBP/USD pair benefited from these dynamics, recovering recent losses and continuing its upward trend above 1.2600.

US Economic Developments and Their Impact on the US Dollar and GBP/USD Pair

It's worth noting that the US markets are quiet due to the Labor Day holiday following a busy week of economic news. US Nonfarm Payrolls for August beat expectations at 187K, and the Unemployment Rate dropped to 3.8%. However, Average Hourly Earnings rose slightly less than expected at 0.2%. US Manufacturing PMI also improved. This has led to speculation that the Federal Reserve might stop raising interest rates, with markets now doubting a rate hike in September and reduced chances for November and December. Despite a modest weekly gain, the US Dollar remains in positive territory for the sixth consecutive week.

Hence, the news of better-than-expected US Nonfarm Payrolls and a potential pause in Federal Reserve rate hikes has put some pressure on the US Dollar, causing it to weaken slightly. This contributed to a positive move in the GBP/USD currency pair as the Pound (GBP) gained strength against the US Dollar on the expectation of a less hawkish Fed.

British Factories Struggle in August Amidst Economic Concerns

Elsewhere, the recent data revealed that British factories had a tough time in August, with their weakest performance since the COVID-19 pandemic began. In the meantime, orders dropped significantly due to higher interest rates, as the Manufacturing PMI fell from 45.3 in July to 43.0, staying below the 50 threshold for six months.

Traders now expect a 25 basis points rate hike in the upcoming meeting, driven by concerns about high inflation from BoE Chief Economist Huw Pill. However, this aggressive tightening by the Bank of England is worrying for the UK economy and is putting pressure on the British Pound.

This weak factory performance and concerns about the Bank's policy could negatively impact the GBP/USD currency pair, potentially causing its value to decline.

GBP/USD - Technical analysis

The GBP/USD pair has distinctly extended its downward movement, decisively surpassing our initial target of 1.2625 and settling beneath it. This move solidifies the dominance of the bearish trend both in intraday and short-term scenarios, following the evident bearish channel depicted on the chart. Our subsequent target is set at 1.2505. The projected trading boundaries for today are a support at 1.2500 and a resistance at 1.2660.

The EMA50 consistently reinforces the anticipated bearish momentum. This prediction stands as long as the pair doesn't breach the 1.2625 level and sustain above it.

Consequently, our analysis remains bearish for both the intraday and short-term, driven by the downward force exerted by the EMA50. A breach and a subsequent stabilization above 1.2625 could initiate potential recovery endeavors, with an initial aim at the 1.2625 zone.

Daily Price Outlook

The GBP/USD pair demonstrated a robust upward surge in the previous session, finding support around the 1.2625 level and successfully reaching the anticipated bullish target at 1.2725. The pair has settled at this level, and our analysis suggests that surpassing this threshold during the morning trading session could pave the way for a continuation of the upward trajectory, aiming for levels around 1.2825 in the near-term perspective.

Consequently, our outlook leans towards a further bullish sentiment in the forthcoming sessions, bolstered by the ascent above the EMA50. It's important to note that a failure to breach the 1.2725 level may halt the positive scenario, potentially triggering a bearish phase targeting the 1.2625 level initially.

The projected trading range for today is expected to extend between the support at 1.2650 and the resistance at 1.2820.

GBP/USD - Trade Idea

Entry Price – Sell Below 1.27311

Take Profit – 1.26731

Stop Loss – 1.27665

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$580/ -$354

Profit & Loss Per Micro Lot = +$58/ -$35

Daily Price Outlook

Despite the UK’s business confidence improving and Bank of England Chief Economist Huw delivering a hawkish commentary, the GBP/USD currency pair failed to maintain its bullish trend and dropped to the 1.2675 level on the day. The Pound Sterling (GBP) initially demonstrates a corrective move as investors seek fresh cues about the interest rate peak from the Bank of England (BoE) for further guidance. However, the gains were short-lived as the bullish US dollar. backed by the hopes of one more interest rate hike from the Fed, kept the currency pair down.

Impact of Hawkish BoE Comments on GBP/USD

It is worth noting that Pound Sterling slipped below the 1.2700 support level following hawkish comments from Bank of England Chief Economist Huw Pill. Despite the BoE's intention to raise interest rates further in September due to elevated inflation, the currency dropped. Investors anticipate the 15th consecutive rate hike of 25 basis points, pushing rates to 5.5%. However, concerns arise about the UK's weakening demand environment due to aggressive policy tightening by the central bank. Sectors like construction, manufacturing, and housing are feeling the impact. Despite this, a Lloyds Bank survey showed a 10-point rise in business confidence in August. The GBP/USD pair may experience heightened volatility as market participants gauge the effect of these developments on the pound's value against the US dollar.

Impact on GBP/USD Amid Mixed US Labor Market Data

Furthermore, the market sentiment remains mixed as US firms slowed their hiring in July, with fewer job openings and a lower-than-expected increase in new hires in August. This suggests that the US labor market is losing momentum, potentially leading the Fed to reconsider its rate hike plans. This news has increased the likelihood of the Fed maintaining interest rates at 5.25-5.50% by year-end, as Fed Chair Jerome Powell noted that inflation is becoming more responsive to labor market conditions. The US Dollar Index has found support around 103.00 as hopes for another Fed rate hike diminish.

For GBP/USD, this could mean potential upside as the USD weakens on softer rate hike expectations, but the currency pair's direction will also depend on the upcoming US Nonfarm Payrolls and ISM Manufacturing PMI data to be released on Friday.

GBP/USD - Technical analysis

The GBP/USD pair demonstrated a robust upward surge in the previous session, finding support around the 1.2625 level and successfully reaching the anticipated bullish target at 1.2725. The pair has settled at this level, and our analysis suggests that surpassing this threshold during the morning trading session could pave the way for a continuation of the upward trajectory, aiming for levels around 1.2825 in the near-term perspective.

Consequently, our outlook leans towards a further bullish sentiment in the forthcoming sessions, bolstered by the ascent above the EMA50. It's important to note that a failure to breach the 1.2725 level may halt the positive scenario, potentially triggering a bearish phase targeting the 1.2625 level initially.

The projected trading range for today is expected to extend between the support at 1.2650 and the resistance at 1.2820.

Daily Price Outlook

The GBP/USD currency pair continued its upward trend for a second day, trading around 1.2620 on Tuesday in Asia. However, the reason for its upward rally can be attributed to the modest US Dollar downfall. This, along with hawkish remarks by Bank of England (BoE) Deputy Governor Ben Broadbent, underpins the British Pound and provides a modest lift to the GBP/USD currency pair.

China's Market Boost, Hawkish Comments, and GBP/USD Dynamics

It is worth noting that China's decision to lower stock trading charges aims to help its market and rebuild trust among investors. This has made the US Dollar weaker, following its recent strong performance. The British Pound is benefiting from hawkish comments by Bank of England's Deputy Governor Ben Broadbent, supporting the GBP/USD pair.

In the meantime, Broadbent's remarks at the Jackson Hole Symposium suggest a cautious approach to monetary policy due to ongoing price effects. Despite recession concerns, markets expect the BoE to raise rates less than initially thought, with limited further increases anticipated after September's expected hike.

Fed Chair Powell's Impact and Market Outlook

Moreover, Federal Reserve (Fed) Chair Jerome Powell solidified market expectations for one more rate hike this year. Powell mentioned on Friday that due to persistent inflation, the Fed could raise rates again while being cautious about tightening too much. This supports higher US Treasury bond yields and, alongside global economic concerns, could prevent significant USD declines and restrict additional gains for the GBP/USD pair.

Looking ahead, investors will stay attentive as they await relevant market-moving data on Monday, while UK banks remain closed for the Summer Bank Holiday. The GBP/USD pair's recent drop below the 100-day Simple Moving Average indicates a potential downward direction.

GBP/USD - Technical analysis

The GBP/USD pair has demonstrated a notable upward trajectory, now challenging the 1.2625 threshold. Its current posture above this level augments the prospects of further appreciation, laying the groundwork for an intraday bullish momentum. We anticipate a potential trajectory towards the 1.2725 region in the near future.

However, an inability to sustain above the 1.2625 mark might curb the anticipated rise, potentially reversing the trend to a decline.

Today's forecasted trading band is set between a support of 1.2560 and a resistance at 1.2725.