The GBP/USD pair has experienced a short-term recovery, with the Pound Sterling gaining strength against the US Dollar. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The weaker-than-expected US Nonfarm Payrolls data has raised concerns about the US economy’s growth prospects, potentially impacting the Federal Reserve’s decision on interest rate cuts. The market is now pricing in a higher probability of a 50 basis point rate cut in September.
GBP/USD Technical Outlook
The GBP/USD pair has shown a bullish trend, with the 1.3100 level acting as a key support. A break above 1.3100 could signal a continuation of the upward trend, with potential targets at 1.3200 and higher. However, the pair is currently consolidating near the 1.3140 level, indicating a short-term pullback.
