GBP/USD Aims for 1.3440 as Bullish Momentum Builds, But UK Jobs Data Looms

Technical Overview:

  • Support: 1.31382 and 1.27035

  • Resistance: 1.34417

  • Pattern: Bullish pennant near recent highs

Fundamental Drivers:

  • The British Pound remains cautious due to softening UK employment figures and moderating wage growth, which could limit further upside if confirmed in upcoming labor market reports.

  • On the flip side, the US Dollar (USD) is under pressure following softer-than-expected US inflation data, increasing expectations of a Fed rate cut later this year.

  • Geopolitical sentiment improved slightly as Donald Trump signaled improved US-China trade relations, calling them "excellent." This has helped weaken the USD further due to reduced demand for safe-haven assets.

Outlook:
If GBP/USD breaks above the current consolidation pattern, a test of 1.3440 appears likely. However, any downside surprise in upcoming UK employment data or hawkish tone from the Fed could bring the pair back toward 1.3138 support.

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Ana

Cross-Asset Analyst & Trainer

Varun Sharma

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VJ Yadav

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