GBPUSD:
Sterling is supported by a softer dollar amid U.S. budget uncertainty and the related risk of delays in publishing parts of macroeconomic data. A lower dollar premium with risk appetite remaining moderate underpins demand for the UK currency, especially after the pair defended the 1.34 area.
Domestically, participants focus on fresh assessments of UK growth dynamics and remarks from officials about the inflation outlook. Absent new upside surprises in prices and with moderate expectations for the Fed’s next steps, the short-term balance of factors favors the pound.
The combination of steady interest in developed-market currencies outside the dollar and stabilizing global yields creates a window for further GBPUSD recovery. Risks are skewed toward gradual strengthening as incremental improvements in UK data and a still-soft external backdrop for the dollar drive buying on pullbacks.
Trading recommendation: BUY 1.3425, SL 1.3375, TP 1.3525
Origin: FreshForex
