Start
trading

Main >
Analytics
>
Fresh forecast
>
Forex Fundamental Analysis
>
GBP/USD attempts to consolidate above 1.3000

GBP/USD attempts to consolidate above 1.3000 | 15 July 2024

15 July 2024, GBP/USD

GBP/USD attempts to consolidate above 1.3000

Event to pay attention to today:

19:30 GMT+3. USD - Federal Reserve Chairman Jerome Powell Speaks

GBPUSD:

The GBP/USD pair saw some selling activity during the Asian session on Monday, resulting in a three-day winning streak reaching its highest point since July 2023 at 1.3000. Spot prices are currently trading at 1.2965, representing a slight decline of 0.15% on the day. This is occurring against a backdrop of modest US dollar (USD) strength, although any meaningful move to the downside seems unlikely.

The criticism of US presidential candidate Donald Trump on Sunday increased political uncertainty and prompted safe haven flows, allowing the US dollar to recover some of Friday's decline to more than three-month lows. Nonetheless, the expectation that the Federal Reserve will soon commence its rate cut cycle is likely to persist, acting as a headwind for the dollar and providing support for GBP/USD.

CME Group's FedWatch tool indicates that there is a 90%+ probability that the Federal Reserve will cut borrowing costs by 25 basis points in September. Furthermore, market expectations have shifted towards the possibility of another interest rate cut in December, following the release of softer-than-anticipated US consumer inflation data last week. This could dissuade traders from placing new bullish bets on the US dollar.

In contrast, the British Pound (GBP) is benefiting from the diminished likelihood of a Bank of England (BoE) rate cut in August, particularly in light of data released last week indicating that the UK economy expanded at a faster-than-anticipated 0.4% in May. This in turn prompts some caution before confirming that GBP/USD may have formed a short-term top and is positioned for a significant fall.

The market is now awaiting the release of the US manufacturing sector business activity index from Empire State. However, the focus will remain on the speech by Fed Chairman Jerome Powell, which, along with US Treasury bond yields and broader risk sentiment, will have an impact on the USD exchange rate. Nevertheless, the aforementioned fundamental backdrop supports the prospects for some dip-buying in GBP/USD.

Trading recommendation: Trading predominantly Buy orders from the current price level.

Connect Drawdown bonus 202% and trade with double your deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in

Show password

Hide password

 Forgot password?
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .

Our best awards:

Trustpilot
FreshForex is a brand that provides access to online trading for clients from more than 200 countries all over the world. The Company's partners are the licensed European liquidity providers, banks, payment aggregators and systems with which the company has been cooperating for more than 19 years.
Clients must be at least 18 years old to use the services of the Company.
The company's services and information on the site are not intended for citizens and residents of some countries, such as Belgium, China, North Korea, France, Hong Kong, Russian Federation, Spain, Great Britain, USA, and also countries identified by the FATF as high-risk countries or countries with serious AML/CFT deficiencies; countries or regions that are under international sanctions. A complete list is available on the "Countries where the company's services are not provided" page. The Company does not have representative offices in the Russian Federation and does not register clients from the Russian Federation.
Risk Warning: Trading financial instruments with leverage carries high risks and can result in both profits and losses. Potential losses are limited by the deposit amount. Before deciding to trade, the client should assess their risk tolerance, experience, and knowledge level.

Freshforex.com uses cookies for better website operation, traffic flow analysis, and personalization. By using this website you agree to our Cookie Policy.
User Data privacy is protected in accordance with GDPR. The SSL certificate installed on the website transfers the information over a secure protocol.
The site contains links to websites of third parties. The Company does not check or control the third-party resources that are in any way related to the FreshForex site, so the Company is not responsible for any third-party information or materials posted.
By creating a link to a third party website, the Company does not endorse or recommend any products or services offered by the third party.
The website content is intended for informational purposes only. It should not be regarded as an offer or solicitation to any person in any jurisdiction in which such an offer or solicitation is not authorized. It also should not be considered as an offer/solicitation to any person to whom it would be unlawful to make such an offer or solicitation, nor regarded as a recommendation to buy, sell or otherwise deal with any particular currency or any other trading asset investment. If you are not sure about your local trading regulations, please, leave this website immediately.
© 2004—2024 FreshForex – Forex broker
Reproduction of the contents is allowed only with active hyperlink to original source.
Riston Capital Ltd (20623 BC 2012) with registered address at Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines.