The GBP/USD is trading in anticipation of a policy update from the British Central Bank this week. The Bank of England (BoE) may not raise interest rates, as the bank has hiked wages. However, there is a lot of caution as inflation unexpectedly rose last month. This update will be next Thursday.
Recently, the U.S. dollar (USD) price increased against other major currencies because the most recent GDP data caused a bullish trend in the market. The U.S. economy posted a 3.3% increase in the last half year, an assessment that was above the forecast of 2%. This shows significant economic growth and may influence the Federal Reserve (Fed) to adopt a more supportive monetary policy stance this week.
Meanwhile, the pound sterling (GBP) is unchanged in the market. Additionally, the GBP fluctuates in a mixed range between positive and negative numbers against major currencies. On the other hand, the positive PMI data released at the beginning of last week boosted the market until the latest report from the Confederation of British Industry (CBI), where the numbers could have been better and limited the gains in the market.
Meanwhile, the British Pound Sterling was at support levels after the release of the services and manufacturing data. However, although manufacturing activity remains in contraction, the index recorded a larger increase than has been seen for nine months. As for the PMI index for the services sector, it came in at 53.8%, showing growth.
GBP/USD Technical Analysis, today, January 29th:
The market shows that the GBP/USD pair is in a bounce zone to the upside, and if there is a break of the 1.2775 resistance level, it can shake the market much more. This week’s events will mark the possibility or not of breaking the psychological resistance located at 1.300. It’s important to pay close attention to the announcements from both the Bank of England and the Federal Reserve. We could expect support at 12600 as the sessions wait for the banks’ releases to know how to react.
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