GBP/USD Rebounds 0.5% Amid USD Weakness but Bearish Pressure Remains

GBPUSD

Forecast: Potential Decline on Key Economic Data

Fundamental Analysis

GBP/USD saw a 0.5% uptick on Monday, marking a positive start to the trading week and ending a six-day losing streak that pushed the pair toward 1.2700. However, this recovery primarily reflects a softening of the U.S. Dollar rather than notable strength in the British Pound. GBP traders are eyeing UK Consumer Price Index (CPI) inflation data due this week, expected to show an annual increase from 1.7% to 2.2%.

The week began on a quieter note, with limited economic releases. Tuesday brings the Bank of England’s Monetary Policy Report Hearings, but the focal point remains Wednesday’s CPI report. Later in the week, traders will also monitor Friday’s UK Retail Sales and S&P PMI data from both the UK and U.S., providing further insight into economic conditions on both sides of the Atlantic.

Technical Analysis

Despite Monday’s 0.5% gain, GBP/USD remains within bearish territory, trading below the 200-day Exponential Moving Average (EMA) near 1.2850. Last Friday, the pair touched multi-month lows around 1.2600, continuing a decline from September’s multi-year high of 1.3434—a 6.25% decrease. The current short-term recovery may invite additional short positions between 1.2700 and 1.2800, maintaining bearish pressure on the pair.

 

 

 

 

 

 

 

 

 

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