GBP/USD Price Forecast: Steadies below 1.3350, remains capped below 100-day SMA
The GBP/USD pair holds steady around 1.3330 during the early European trading hours on Monday. Traders continue to assess the US interest rate path after Federal Reserve (Fed) Chair Kevin Warsh’s remarks. All eyes will be on the UK jobs data on Tuesday.
The GBP/USD pair maintained stability near 1.3330 during early European trading on Monday. Traders are monitoring the US Federal Reserve's interest rate outlook following remarks from Fed Chair Kevin Warsh. Economic indicators are expected to play a crucial role, with UK jobs data on Tuesday and the Consumer Price Index (CPI) report on Wednesday.
The upcoming IMF-World Bank annual meetings in Bangkok on Friday also saw Fed Chair discuss the possibility of no preconceived interest-rate decisions at the October 27-28 meeting, with a 84% chance of a rate hold according to FedWatch tool. UK economic data will likely confirm the first Bank of England (BoE) rate hike in over three years in November, as Bloomberg Economics chief UK economist Dan Hanson anticipates a 25-basis-point hike in November and another in February.
Analysts at MUFG point to the Pound's resilience, noting it has remained stable at roughly the same level since the end of June, with only the energy-linked CAD and NOK outperforming. Despite this, MUFG warns of potential risks if rates remain steady, as evidenced by an increase in credit card defaults underlining rising consumer strains.
Technical analysis shows GBP/USD holding below the 100-day simple moving average, indicating a mildly bearish near-term bias, with support around the 1.3335 level and resistance near the 1.3335 level.
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