GBP/USD remains pressured around the 1.3150 zone as UK fiscal uncertainty and rising expectations of a December BoE rate cut keep the British Pound on the back foot. Meanwhile, the US Dollar holds steady ahead of delayed US data releases following the government reopening.
Entry Zone: Sell on rallies toward 1.3175 – 1.3190
Stop Loss: Above 1.3235
Targets: 1.3125, then 1.3090 if sellers gain momentum
Catalyst Watch: UK inflation, PMIs, BoE rate expectations, US data backlog
Trading Rationale
GBP/USD struggles for the third consecutive session as fundamentals lean bearish:
- UK Chancellor Rachel Reeves abandoned income tax rises, raising new concerns about fiscal sustainability.
- UK GDP contracted in September, reinforcing expectations of a BoE rate cut in December.
- The Pound remains sensitive to data releases this week, especially inflation and PMIs.
- The USD stays broadly supported as markets scale back Fed December cut expectations (now only 43%).
- Fed Governor Waller signaled openness to cutting in December, limiting extreme USD strength but keeping bias neutral-to-firm.
Technically, GBP/USD has stalled under 1.3200 and continues to struggle near its H4 moving average. Momentum favors a drift lower toward 1.3120 unless buyers reclaim 1.3198 resistance.
Key Technical Zones
Current Price: 1.3160
Potential Resistance: 1.3198 / 1.3235
Potential Support: 1.3120 / 1.3084
DISCLAIMER: Trading forex and CFDs involves significant risk and may result in loss of capital. This material is for educational purposes only and is not financial advice. Always trade responsibly.
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