GBP/USD Retreats as Rate Cut Expectations Fade:Market Outlook

In the Tuesday London opening session, the GBP/USD pair experienced a downward movement, slipping from 1.2890 to 1.2800 as market sentiment shifted with reduced rate cut expectations from the Bank of England (BoE).

Following a touch of the 1.2900 area, the price exhibited signs of reversal, with the RSI indicator indicating a departure from overbought conditions, signaling a potential downturn. Analysts anticipate a retracement to occur around the 1.2680 level.

Investors are closely eyeing Tuesday’s UK labor figures alongside the US Consumer Price Index (CPI) inflation print. Speculation regarding rate cuts from both the BoE and the Federal Reserve (Fed) continues to influence market dynamics.

The UK’s ILO Unemployment rate for the quarter ending January is forecasted to remain stable at 3.8%, while Average Earnings Including Bonuses are expected to decline to 5.7% from the previous 5.8%. Concurrently, Average Wages Excluding Bonuses are projected to remain unchanged at 6.2%, suggesting a potential decrease in consumer bonuses.

In the US, February’s MoM CPI is anticipated to accelerate to 0.4% from 0.3%, underscoring persistent inflationary pressures. However, Core MoM CPI, excluding food and energy prices, is predicted to decrease to 0.3% from 0.4%.

Given these developments, a bearish continuation is anticipated in the GBP/USD pair.

تم فتح الصفقة:

✅ Close 50% Move SL Breakeven.

تعليق:

✅ Close 50% Move SL Breakeven.