The GBP/USD currency pair is stuck near $1.2633, awaiting crucial economic data releases from both the US and UK. Here’s a breakdown of the situation:
Current Price: GBP/USD is hovering around $1.2633, similar to the past few days.
Upcoming Data:
- US PCE Data (Today): This inflation data is a key indicator for the Federal Reserve’s interest rate decisions.
- UK & US GDP Data (Today): Both economies’ Gross Domestic Product growth figures will be released. Forecasts suggest a possible contraction in the UK’s Q4 GDP.
Trading Range: The price movement is likely to be restricted within the range of $1.2575 (last Friday’s low) and $1.2700 until the data releases.
Potential Scenarios:
- Bearish View: The analysis suggests a potential decline if the data favors the US economy (stronger US GDP, higher US inflation).
- Sell trade: Target profit at $1.2575, stop-loss at $1.2675, timeframe 1-2 days.
- Bullish View: A possibility exists for a price increase if the data unexpectedly favors the UK or weakens the US Dollar.
- Buy-stop order: Entry at $1.2650, take-profit at $1.2700, stop-loss at $1.2575.
Overall, the GBP/USD direction hinges on the upcoming economic data. A weak US PCE or a contraction in US GDP could strengthen the Pound, while the opposite scenario might push it lower.