FX.co ★ GBP/USD

As the new trading week unfolds, the Pound Sterling (GBP) charts an uncertain course amid lingering doubts about the UK's economic trajectory. This uncertainty juxtaposes the backdrop of the recent interest rate hike the Bank of England (BoE) announced. The central bank, driven by persistent inflationary pressures and robust wage growth momentum, must maintain its policy-tightening stance. Fundamentals of the GBP/USD: Market participants are inclined to believe that the US central bank will stay the course with its hawkish stance. Anticipations are rife for another 25 basis points lift-off before the year draws close. The spotlight, therefore, falls on the Federal Reserve's 'dot plot' projections and inflation forecasts. Investors will keenly parse through Fed Chair Jerome Powell's post-meeting conference for insights into the future rate-hike trajectory. Such revelations are poised to shape the short-term dynamics of the USD and, by extension, inject vitality into the GBP/USD pair. This trading week sets the stage for a pivotal faceoff between the Federal Reserve (Fed) and the Bank of England (BoE), both poised to make consequential interest rate calls. Against this backdrop, the Pound Sterling (GBP) vies for position against the Greenback (USD), leaving investors vigilant in their strategic posturing. H1 Time Frame Technical Outlook: A closer look at the Moving Average Convergence Divergence (MACD) reveals a telling configuration. The MACD line remains below the centerline, exhibiting a discernible divergence beneath the signal line. This configuration indicates potential bearish momentum, hinting at the likelihood of the prevailing downward trend persisting.

In the event of bearish sentiment exerting pressure on the GBP/USD pair, immediate support is anticipated around the 1.2110 mark, with the psychological barrier of 1.2100 following suit. Should bearish forces intensify, the currency pair could gravitate towards the subsequent support level, approximating the lows witnessed in March at 1.1802, with the psychological threshold of 1.1800 looming as a critical juncture.