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Pound Sterling Vulnerable as US Dollar Rebounds

The Pound Sterling (GBP) faced pressure on Thursday, struggling to hold above the key resistance level of 1.2500.

  • Market Uncertainty: Positive sentiment from the Fed meeting waned, leading to a cautious market atmosphere.
  • Fed’s Less Hawkish Stance Not Enough: While the Fed’s decision to maintain interest rates and hint at future cuts provided some support for the GBP earlier, this optimism faded.
  • US Data in Focus: Investors are now focused on upcoming US economic data releases, particularly the Nonfarm Payrolls report on Friday, which could influence the US Dollar and GBP.

Technical Analysis: GBP/USD Faces Resistance

  • The GBP/USD pair remains above the crucial support level of 1.2500, but struggles to break above resistance.
  • The Head and Shoulders pattern continues to weigh on the GBP’s long-term outlook.
  • The RSI suggests indecisiveness among investors.