GBP/USD on a Bullish Run – Quick Daily Outlook
The GBP/USD pair gained strong momentum and surpassed 1.1300. The near-term technical view indicates buyers will continue to dominate the
The GBP/USD pair gained strong momentum and surpassed 1.1300. The near-term technical view indicates buyers will continue to dominate the pair’s movement. Still, investors may be hesitant to gamble on more pound strength given the uncertainties surrounding incoming British Prime Minister Rishi Sunak’s budget plan. Sir Graham Brady, chair of the 1922 Committee, stated on Monday that Penny Mordaunt has decided to withdraw from the Tory leadership race, leaving Rishi Sunak as the lone candidate for the position of Prime Minister.
Although the early market reaction helped the UK’s FTSE 100 Index gain traction and allowed sterling to remain robust against its rivals, market participants remain pessimistic about GBP/USD’s path. Sunak stated in a brief statement on Monday that they were experiencing “significant economic issues.”
The fiscal plan is now slated to be released on October 31, just a few days before the Bank of England’s (BoE) monetary policy announcements. According to some sources, Sunak may postpone the budget unveiling. If the Bank of England is obliged to determine the policy rate before viewing the budget plan, it may hesitate to be aggressively hawkish, causing the British pound to lose interest.
The Conference Board’s Consumer Confidence Index data for October will be released in the second half of the day on the US economic docket. Investors are seeking confirmation in macroeconomic data that the Fed will hit its peak hawkishness with a 75 basis point rate hike in November, according to Monday’s reaction to poor S&P Global PMI statistics from the US. As a result, disappointing confidence indicators may harm the greenback and vice versa.
GBP/USD Technical Outlook
The GBP/USD pair traded strongly bullish yesterday, returning to the chart’s bullish channel, with the goal of achieving predicted significant gains in the next sessions, primarily by touching the 1.1580 mark.
As a result, we anticipate additional bullish bias in the next sessions, noting that breaking and holding above 1.1440 will halt the positive scenario and cause the price to fall again.
Today’s trading range is predicted to be between 1.1370 support and 1.1550 resistance.
The expected trend for today: Bullish
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