GBP/USD Dynamics: Political Reshuffle and Data Anticipation...
GBP/USD Dynamics: Political Reshuffle and Data Anticipation Set the Tone
In the European session on Monday, GBP/USD demonstrated upward momentum, edging towards 1.2250 after a period of Asian session consolidation slightly above 1.2200. The pair's short-term technical outlook signals a reluctance among sellers to bet on sustained weakness in Pound Sterling. However, the impending release of crucial macroeconomic data on Tuesday may keep the pair's movements subdued.
British Prime Minister Rishi Sunak initiated a cabinet reshuffle by dismissing Home Secretary Suella Braverman on Monday morning. James Cleverly has been appointed as the new Home Secretary, and Sunak named former Prime Minister David Cameron as the new Foreign Secretary. Despite these significant political developments, there appears to be a limited impact on the overall risk mood. The UK's FTSE 100 Index indicated a 0.6% daily gain at the time of press.
Looking ahead, Tuesday brings the release of the UK's Office for National Statistics jobs report, encompassing wage inflation figures for October. Simultaneously, market participants will closely monitor the October Consumer Price Index data from the US. Despite Federal Reserve (Fed) Chairman Jerome Powell's hawkish comments last week, market expectations lean towards an 80% probability that the Fed will maintain the policy rate in December.
Our analysis leans towards a continuation of the long rally, especially after the price rebounded multiple times on the dynamic trendline. With our eyes set on a target extension to 1.2360, we anticipate sustained positive momentum in the GBP/USD pair. As events unfold, the interplay of political developments and key economic indicators will likely shape the currency pair's trajectory in the coming sessions.
Our preference
Long positions above 1.2230 with targets at 1.2325 & 1.23600 in extension.
In the European session on Monday, GBP/USD demonstrated upward momentum, edging towards 1.2250 after a period of Asian session consolidation slightly above 1.2200. The pair's short-term technical outlook signals a reluctance among sellers to bet on sustained weakness in Pound Sterling. However, the impending release of crucial macroeconomic data on Tuesday may keep the pair's movements subdued.
British Prime Minister Rishi Sunak initiated a cabinet reshuffle by dismissing Home Secretary Suella Braverman on Monday morning. James Cleverly has been appointed as the new Home Secretary, and Sunak named former Prime Minister David Cameron as the new Foreign Secretary. Despite these significant political developments, there appears to be a limited impact on the overall risk mood. The UK's FTSE 100 Index indicated a 0.6% daily gain at the time of press.
Looking ahead, Tuesday brings the release of the UK's Office for National Statistics jobs report, encompassing wage inflation figures for October. Simultaneously, market participants will closely monitor the October Consumer Price Index data from the US. Despite Federal Reserve (Fed) Chairman Jerome Powell's hawkish comments last week, market expectations lean towards an 80% probability that the Fed will maintain the policy rate in December.
Our analysis leans towards a continuation of the long rally, especially after the price rebounded multiple times on the dynamic trendline. With our eyes set on a target extension to 1.2360, we anticipate sustained positive momentum in the GBP/USD pair. As events unfold, the interplay of political developments and key economic indicators will likely shape the currency pair's trajectory in the coming sessions.
Our preference
Long positions above 1.2230 with targets at 1.2325 & 1.23600 in extension.
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