Pound, Dollar Talking Points:
- GBP[1]/USD[2] under pressure as prime minister Boris Johnson remains under scrutiny
- Bank of England (BoE) expected to rate hikes, an additional catalyst for Sterling
- US NFP[3] data expected to influence price action[4]
The British Pound[5] has managed to edge slightly higher as investors price in higher rates. With inflation[6] data weighing on markets, the US employment[7] data and the release of non-farm payrolls on Friday will likely pose as an additional catalyst for price action.
Find out more about the impact of interest rates on the foreign exchange market[8]
DailyFX Economic Calendar[9]
Although the greenback currently remains the dominant currency for GBP/USD[10], economic data may still influence the trajectory of the imminent move.
GBP/USD Technical Analysis
At the time of writing GBP/USD[11] has risen higher, threatening channel resistance. As price action edges towards the 23.6% Fibonacci retracement level of the 2020 – 2021 move, the next level of resistance resides at the key psychological of 1.400.
Chart prepared by Tammy Da Costa[12] using TradingView
--- Written by Tammy Da Costa, Analyst for DailyFX.com
DailyFX[14] provides forex news and technical analysis on the trends that influence the global currency markets.
