GBPUSD: BUY 1.3550, SL 1.3530, TP 1.3640 | 17 يونيو 2025

Event to pay attention to today:

15:30 EET. USD - Empire Manufacturing Manufacturing Index

GBPUSD:

The GBP/USD pair remains on the defensive below Friday's three-year high, although it lacks bearish conviction and is trading in a narrow range around 1.3500 during the Asian session.

The latest UK consumer inflation data will be released on Wednesday, ahead of Thursday's Bank of England (BoE) meeting, which will play a key role in influencing the British pound (GBP). In addition, the US Federal Reserve (Fed) plans to announce its monetary policy decision on Wednesday, which will affect the US dollar (USD) exchange rate and give a significant boost to the GBP/USD pair.

Meanwhile, weaker UK GDP data released on Friday, which showed that the economy contracted more than expected by 0.3% in April, reinforced expectations that the BoE will cut interest rates more aggressively than anticipated. On the other hand, the US dollar is receiving some support from the global flight to safe assets caused by rising geopolitical tensions in the Middle East, which is helping to limit the growth of the GBP/USD pair.

However, growing recognition that the US central bank will also resume its rate-cutting cycle in September amid signs of weakening inflation in the US is holding back dollar bulls from aggressive bets. Moreover, the generally positive risk sentiment acts as a barrier to the dollar as a safe haven and provides some support to the GBP/USD pair, which requires some caution before confirming that spot prices have peaked.

Trading recommendation: BUY 1.3550, SL 1.3530, TP 1.3640

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