GBPUSD:
The GBP/USD pair interrupted its three-day winning streak, trading around 1.3500 during Asian hours on Friday. The mood is predominantly bullish, as technical analysis of the daily chart shows that the pair remains within an upward channel.
The pair remains firmly rooted in its recent consolidation, but markets are poised for an upward reaction following Friday’s release of US Personal Consumption Expenditures (PCE) data.
If it rises, GBP/USD could target the monthly high of 1.3594 reached on August 14. A break above this level could reinforce the bullish sentiment and support the pair in approaching 1.3788, the highest level since October 2021, recorded on July 1.
All eyes are on the US data to be released on Friday. US PCE inflation for the year ending in July is expected to rise to 2.9% year-on-year, and investors hope that US inflation will remain under control. ending in July, is expected to rise to 2.9% on an annualized basis, and investors hope that inflation in the US will remain under control so that the Federal Reserve (Fed), under pressure from lagging employment figures, will decide to cut interest rates on September 17. Core annual PCE inflation in the US has exceeded the Fed’s 2% target every month since April 2021 and has remained virtually unchanged since July 2024.
Trading recommendation: BUY 1.3520, SL 1.3440, TP 1.3630
Origin: FreshForex
