Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The GBP/USD pair encountered a downward correction after reaching a one-month high of 1.2810. This decline was primarily driven by a stronger-than-expected US Nonfarm Payrolls report, which initially dampened the US Dollar’s strength. However, a subsequent surge in the US Consumer Sentiment Index bolstered the Greenback, reversing the earlier trend. As a result, the GBP/USD pair is now trading around 1.2700.
Key technical levels to monitor include the 200-day Simple Moving Average at 1.2820 and the 20-day Simple Moving Average at 1.2690. A break below the 20-day SMA could signal further downside, potentially pushing the pair towards the 1.2650 support level.
The stronger-than-expected US economic data has raised expectations for a more hawkish stance from the Federal Reserve. This could lead to higher interest rates in the US, making the US Dollar more attractive to investors. As a result, the GBP/USD pair may face additional downward pressure in the near term.
However, it’s important to note that geopolitical factors and global economic trends could also influence the pair’s movement. Any escalation of geopolitical tensions or a slowdown in global economic growth could weaken the US Dollar and support the GBP/USD pair.
