GBPUSD: BUY 1.2900, SL 1.2820, TP 1.3050 | 07 Marzo 2025

GBPUSD:

The GBP/USD pairing pressed the accelerator pedal and produced another strong session on Wednesday, rising a further 0.85% and marking a third consecutive session of solid gains.

Despite warnings that the UK economy as a whole is weakening, markets rose following Wednesday's Bank of England (BoE) monetary policy hearing. Bank of England Governor Andrew Bailey said inflation is expected to rise moderately despite weaker growth figures, prompting markets to adjust expectations of a rate cut before the end of 2025. Rates markets now expect less than 50bp of overall interest rate cuts before the end of the year.

ADP's employment change for February showed just 77k new jobs, well below the forecast of 140k and March's 186k. Despite this, ADP results have not consistently correlated with Non-Farm Payrolls (NFP) since the reporting change in 2022, so the low reading is of little significance.

There is little of note on the UK side of the economic data list this week, so the key data for traders remains US Non-Farm Payrolls (NFP), which will be released this Friday.

Trading recommendation: BUY 1.2900, SL 1.2820, TP 1.3050

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