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GBPUSD:
The GBP/USD pair is declining, with spot prices currently trading around 1.2925, although the downward movement lacks bearishness as traders await the release of US consumer inflation data with interest before making new directional bets.
The US Consumer Price Index (CPI) report will play a key role in shaping market expectations regarding the Federal Reserve’s (Fed) rate cut course, which in turn will stimulate demand for the US Dollar and provide fresh impetus to the GBP/USD pair.
However, significant USD strength seems unlikely amid growing confidence that the Federal Reserve (Fed) will cut interest rates several more times this year amid fears of a tariff-induced slowdown in US economic activity. In addition, expectations that the Bank of England (BoE) will cut rates more slowly than other central banks, including the Fed, could support the British Pound (GBP) and lend support to the GBP/USD pair.
Thus, any further corrective decline could be seen as a buying opportunity and is likely to remain limited.
Trading recommendation: BUY 1.2935, SL 1.2895, TP 1.2985
Origin: FreshForex
