The Pound Sterling has experienced a short-term recovery, with the GBP/USD pair trading near 1.3180. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The weaker-than-expected US Nonfarm Payrolls data has raised concerns about the US economy’s growth prospects, potentially impacting the Federal Reserve’s decision on interest rate cuts. The market is now pricing in a higher probability of a 50 basis point rate cut in September.
GBP/USD Technical Outlook
The GBP/USD pair has shown a bullish trend, with the 1.3100 level acting as a key support. A break above 1.3100 could signal a continuation of the upward trend, with potential targets at 1.3200 and higher. The pair’s recent recovery and the upward-sloping EMAs suggest a bullish outlook.
