• GBP/USD gains ground near 1.2713 amid the risk-on mood. 
  • The Bank of England (BoE) is expected to hold the policy rate unchanged at 5.25% at its February 1 meeting. 
  • Investors have become less convinced that the Federal Reserve (Fed) will cut the interest rate in March.

The GBP/USD pair holds above the 1.2700 psychological mark during the early Asian session on Tuesday. The rebound of the major pair is supported by an improved risk appetite. Investors will keep an eye on the preliminary UK S&P Global PMI for January on Wednesday, which is expected to remain upbeat. At press time, GBP/USD is trading at 1.2713, gaining 0.04% on the day. 

The restrictive monetary policy stance of the Bank of England provides some support to the Pound Sterling (GBP). All 70 economists who participated in the Reuters poll said that they anticipate the Bank of England (BoE) to hold the policy rate unchanged at 5.25% at its policy meeting on February 1. Nonetheless, the BoE is expected to cut the rate to 5% in Q2 of 2024 as inflation is projected to drop below the target, faster than the Q3 cut from the December poll. 

Ahead of the BoE key event, the preliminary UK S&P Global PMI for January will be released on Wednesday. The Manufacturing PMI is estimated to improve to 46.7 from 46.2, while the Services PMI is projected to ease to 53.2 from 53.4. Finally, the Composite PMI is expected to show an increase of 52.2. 

On the other hand, the markets have become less convinced that the Federal Reserve (Fed) will cut the interest rate in March after robust US economic data last week. According to the CME FedWatch Tool, the market has priced in a 42% chance of a rate cut at the March meeting.

However, two key events this week, including US Gross Domestic Product (GDP) for Q4 and the Core Personal Consumption Expenditures Price Index (Core PCE), might determine at least which way the central bank policymakers could lean on policy. The weaker-than-expected data might weigh on the US Dollar (USD). 

Market participants will focus on the US Richmond Fed Manufacturing Index for January, due on Tuesday. The attention will shift to the UK and US PMI reports on Wednesday. Traders will take cues from these figures and find trading opportunities around the GBP/USD pair. 

 

GBP/USD

Overview
Today last price 1.2713
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.2709
 
Trends
Daily SMA20 1.2714
Daily SMA50 1.2646
Daily SMA100 1.2454
Daily SMA200 1.2553
 
Levels
Previous Daily High 1.2733
Previous Daily Low 1.2687
Previous Weekly High 1.2766
Previous Weekly Low 1.2597
Previous Monthly High 1.2828
Previous Monthly Low 1.2501
Daily Fibonacci 38.2% 1.2715
Daily Fibonacci 61.8% 1.2705
Daily Pivot Point S1 1.2686
Daily Pivot Point S2 1.2663
Daily Pivot Point S3 1.264
Daily Pivot Point R1 1.2732
Daily Pivot Point R2 1.2756
Daily Pivot Point R3 1.2778

 



 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD looks at the RBA for near-term direction

AUD/USD looks at the RBA for near-term direction

AUD/USD resumed its rebound and briefly surpassed the 0.6600 barrier on the back of the renewed and marked resurgence of the downward bias in the US Dollar. Investors, in the meantime, expect the RBA to keep its rates unchanged on Tuesday.

AUD/USD News
EUR/USD posts modest gains above 1.0850, all eyes on the US presidential election results

EUR/USD posts modest gains above 1.0850, all eyes on the US presidential election results

The EUR/USD pair trades with mild gains near 1.0880 during the early Asian session on Tuesday. The US Dollar edges lower as traders brace for the outcome of the US presidential election and a likely interest rate cut from the Federal Reserve, which supports some support for the major pair. 

EUR/USD News
Gold trades around $2,730

Gold trades around $2,730

Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions. 

Gold News
RBA widely expected to keep interest rate unchanged amid persisting price pressures

RBA widely expected to keep interest rate unchanged amid persisting price pressures

Australia’s benchmark interest rate is set to stay unchanged at 4.35% in November. The focus remains on Reserve Bank of Australia Governor Michele Bullock’s comments and updated economic forecasts. The Australian Dollar could wilt if RBA Governor Bullock ramps up bets for a December rate cut.

Read more
US presidential election outcome: What could it mean for the US Dollar?

US presidential election outcome: What could it mean for the US Dollar? Premium

The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures