- GBP/USD revolts at least 1.3548 at least 1.3600 as the fed cuts stand at 94% for 25 bps move.
- The UK inflation remains 4% ahead of employment and CPI data, which limits the scope of BOE to reduce the policy.
- Policy deviations are seen promoting sterling, expecting BOE rates while Fed resumes its spontaneous cycle.
Pound Sterling (GBP) proceeds during the North American session on Monday as traders are set to digued monetary policy meetings by major central banks in Atlantic. Expectations for the first rate of deduction by the Federal Reserve (Fed) in nine months, and the bank of England (BOE) will reduce the British currency, keeping the rates unchanged.
GBP/USD trades up to 1.3586 up to 1.3586 after bouncing the daily climb of 1.3548 at the time of writing.
Cut the pound profit and boi as expected, narrow the interest rate difference as the price cut in the price of traders
The Federal Reserve is expected to reduce the rate of 25 basis points in a meeting starting on Tuesday and ends with the Central Bank’s decision, updating its economic estimates and Fed Chair Zerome Powell Press Conference. Until no surprise, the players of the money market cut the possibility of 94% by a quarter percent, while there is a thin potential of 6% for a large size cut.
Regarding the UK, a busy economic dock will decide on Tuesday on employment data, Consumer Price Index (CPI) on Wednesday and on Thursday. In the UK, inflation failed to reduce, it is further tightening 4% threshold and warrant by UK Central Bank.
Therefore, decrease in interest rate difference between the US and the UK will be in favor of more in the GBP/USD pair.
GBP/USD Price Forecast: Technical approach
After hitting the heights of the week at GBP/USD 1.3620, the top remains biased upwards, although buyers will have to get a daily off above 1.3600 to reverse the further. The next major resistance level will be at 1.3681 beyond 1.3700 on 4 July. Violation of the latter will be exposed on 1 July at 1.3788.
On the other hand, if the GBP/USD struggles on 1.3600, the pair can be designed to challenge 1.3550. On further weakness, the 20-day SMA is on the test card at 1.3497.
Pound sterling price this month
The table below shows a percentage change of British pounds (GBP) against major currencies listed this month. The British pound was the strongest against Canadian dollar.
| USD | EUR | Gbp | JPY | Paaji | Worship | Aristocratic federal | Chef | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.55% | -0.71% | 0.25% | 0.53% | -1.75% | -1.24% | -0.62% | |
| EUR | 0.55% | -0.16% | 0.75% | 1.11% | -1.21% | -0.69% | -0.06% | |
| Gbp | 0.71% | 0.16% | 0.80% | 1.25% | -1.06% | -0.53% | 0.14% | |
| JPY | -0.25% | -0.75% | -0.80% | 0.33% | -1.99% | -1.46% | -0.84% | |
| Paaji | -0.53% | -1.11% | -1.25% | -0.33% | -2.26% | -1.76% | -1.09% | |
| Worship | 1.75% | 1.21% | 1.06% | 1.99% | 2.26% | 0.53% | 1.21% | |
| Aristocratic federal | 1.24% | 0.69% | 0.53% | 1.46% | 1.76% | -0.53% | 0.68% | |
| Chef | 0.62% | 0.06% | -0.14% | 0.84% | 1.09% | -1.21% | -0.68% |
The heat map shows a percentage change of major currencies against each other. The base posture is picked up from the left column, while the quotation posture is raised from the top line. For example, if you choose British pounds from the left column and move to the US dollar along the horizontal line, the percentage change displayed in the box will represent GBP (Aadhaar)/USD (quotes).
