GBP/USD Gains Support—Should You Buy Above $1.1940?
GBP/USD celebrates positive inflation signs and the market's cautious optimism, breaking a three-day decline near 1.2000

According to the news, other food item prices rose at the quickest rate on record to 12.4% in November, up from 11.6% the month before. Overall store price inflation jumped to 7.4%, a new high for the 17-year-old measure, up from 6.6% in October.”
Aside from the probable proactive BOE, softening Covid worries from China appeared to have supported the GBP/USD pair’s recent rebound. Nonetheless, the dragon nation’s daily infections fell for the second time in a row to 37,828 in the most recent count. Previously, China announced several measures to reduce the severe lockdown in crucial areas following a drop in daily Covid infections from a record high. Nonetheless, the world’s second-largest economy maintained its Zero-Covid policy.
Bloomberg reported reopening certain civic buildings in the broader Zhengzhou region, which is home to an important iPhone manufacturing plant. Earlier on Tuesday, it was announced that China’s Guangdong province would allow Covid patients’ close contacts to quarantine at home.
Similarly, the US Conference Board (CB) Consumer Confidence Index for November fell to 100.2 from 102.2 the previous month (revised down from 102.5).
It should be highlighted, however, that aggressive expectations from Fed Chairman Jerome Powell, mostly due to recent hawkish rhetoric among officials, appear to put the GBP/USD pair buyers to the test. Fears of a statewide strike by UK government employees, as well as fears of recession due to recent changes in economic policies, may also provide a challenge to pair purchasers.
Aside from Powell, an early signal for Friday’s US Nonfarm Payrolls (NFP), specifically the ADP Employment Change for November, as well as the second readings of the US Gross Domestic Product (GDP) for the third quarter (Q3) will be significant for GBP/USD pair traders to watch.

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