GBP/USD aimed at 1.22 as US Dollar eases back
|- The GBP/USD is seeing a bounce as the US Dollar eases back ahead of mid-week Fed.
- UK data continues to miss the mark as BoE looms ahead for Thursday.
- Traders to keep an eye out with another NFP Friday over the horizon.
The GBP/USD is finding some bids for Monday, rebounding from the day's early lows just south of the 1.2100 handle, and the Pound Sterling has a target set on 1.2200 ahead of the Federal Reserve's (Fed) Wednesday rate call. The Fed will beat the Bank of England (BoE) to the punch on central bank action this week, with the BoE slated for the day after.
Both central banks are expected to keep rates steady this week, especially with another round of US Non-Farm Payrolls on the docket for Friday, but investors are approaching both monetary policy institutions with very different attitudes.
Market to punish GBP on impression that BoE is not doing enough – Commerzbank
Concerns continue to mount that the UK's central bank is risking too little movement, exposing the British economy to further inflation despite a lagging economy set to tip even further into the downside if rates go up any higher.
On the US side, investors are all but hoping and pleading for the Fed to get pushed into a rate cut cycle sooner rather than later, but a firm economy and limited downside sees the Fed set to hold rates higher for longer.
GBP/USD Technical Outlook
The Pound Sterling is bidding up on Monday climbing over 0.6% from the day's early-week lows below 1.2100, and the pair is set for a re-challenge of 1.2200 as long as GBP bidders can hang onto the near-term uptrend.
The Price floor for the GBP/USD sits nearby at eight-month lows near 1.2037, while technical resistance sits at the last swing low near 1.2300.
The 50-day Simple Moving Average (SMA) is dipping into the 1.2350 region, while the 200-day SMA is capping off long-term upside from 1.2450.
GBP/USD Daily Chart
GBP/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.