GBP/USD continues to struggle near key levels | 28 Enero 2025

Event to pay attention to today:

17:00 EET. USD - CB Consumer Confidence

GBPUSD:

The GBP/USD pair stuck around key technical levels for the second trading day in a row, dropping a candle with a top near the 1.2500 mark and leaving cable traders facing the threat of a bearish decline depending on how the Federal Reserve (Fed) rate meeting goes later this week.

UK data is extremely limited this week, leaving Pound traders all alone ahead of the Fed's upcoming rate decision on Wednesday. The Fed is generally expected to keep interest rates unchanged in January and depending on how confident Fed Chairman Jerome Powell speaks at his mid-week press conference, market hopes for an increased pace of Fed rate cuts in 2025 could be jeopardised. Markets have raised their expectations for Fed rate cuts over the course of the year, doubling the pace of rate cuts over the calendar year to 50 bps in total.

Political headlines are stirring markets again after US President Donald Trump got into a tiff with Colombia on social media as the two countries argued over the travelling conditions of Colombian migrants extradited from the US, leading Donald Trump to threaten to impose massive tariffs of 50% on all exports from Colombia to the US. In the end, all of these tariffs turned out to be nothing more than a rant, but countries and markets are paying attention to how quickly the tariffs imposed by Trump could appear.

Trading recommendation: Trading mainly with Sell orders from the current price level.

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