GBPUSD:
The pound remains under pressure as U.K. growth risks persist and the Bank of England is expected to proceed cautiously amid softer price dynamics and weak consumer-credit trends. Market chatter about a shift toward rate cuts in the coming months reduces GBP’s appeal via the rate-differential channel versus the dollar.
In parallel, the Federal Reserve cut rates by 25 bps but indicated that another step in December is not a foregone conclusion. This prudential signal trimmed the odds of further near-term U.S. easing and lent support to the dollar. The U.K. rates market also weighs on sterling: Gilt yields remain elevated against a backdrop of fiscal debates, pressuring growth expectations and corporate sentiment.
As a result, near-term drivers line up against GBP: softer domestic macro prints, the BoE’s cautious tone, and relatively firmer expectations for the dollar after the Fed’s comments. Rallies in the pair look limited and attractive for selling.
Trading recommendation: SELL 1.3205, SL 1.3265, TP 1.3100
Origin: FreshForex
