GBP/USD Price Analysis: The next downside target is seen at 1.2540
The GBP/USD pair recovers some lost ground and currently trades around 1.2580 on Wednesday during the early European session. The decline of the USD Index (DXY) and the dismal market mood in the UK economy act as a tailwind for the major pair. Later on Wednesday, the ADP Employment Change and the ISM Services PMI will be due. Also, Federal Reserve (Fed) Chair Jerome Powell's speech will be a closely watched event.
Technically, the bearish outlook of GBP/USD remains intact as the major pair is below the key 50-period and 100-period Exponential Moving Average (EMA) on the four-hour chart with a downward slope. Furthermore, the downward momentum is confirmed by the Relative Strength Index (RSI), which hovers around 44.5 in bearish territory, supporting the sellers for the time being. Read more...
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GBP/USD remains on the defensive below 1.2600, eyes on US data, Fed’s Powell speech
The GBP/USD pair trades with a negative mild bias around 1.2575 despite the decline of the US Dollar on Wednesday. The major pair remains vulnerable due to slowing UK inflation and a dismal market mood. The Fedspeak on Wednesday will be closely watched by traders, as it might offer some hints about the interest rate trajectory and policy outlook.
Many Fed officials spoke about the monetary policy outlook on Tuesday. Cleveland Fed Bank President Loretta Mester said that she still expects interest rate cuts this year, but ruled out the next policy meeting in May. San Francisco Fed Bank President Mary Daly also anticipates rate cuts this year but not until there’s more evidence that inflation has cooled down. San Francisco Fed President Daly said that three rate cuts this year are a “very reasonable baseline” though nothing is guaranteed. According to the CME FedWatch Tool, investors are now pricing in about a 65% odds of a rate cut by June, down from about 70% after the Fed's March meeting. Read more...
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