The GBPUSD pair rebounds from a prime support level, igniting optimism for future trends. The Dot Plot predicts three rate cuts by 2024. Given the updated economic outlooks, expectations are high for growth and inflation along with decreased unemployment rates. Despite potential uncertainties, investors’ interest in the GBPUSD pair remains strong.
Analysts pause on making judgments on current inflation data. The 2% goal could be hindered by unexpected circumstances. Performance has exceeded forecasts for two consecutive months, despite a slight dip in the Services PMI. Rather than jumping to conclusions, experts recommend patience and careful analysis of future developments.
The first rate cut is expected in June.
GBPUSD pair stability amidst economic predictions
Haskel and Mann decided for a hold instead of a hike, causing unrest among stakeholders. The Bank of England maintains a steady interest rate amid global economic uncertainties. Rising cost of living, lower wage growth, and stalling productivity continue to squeeze domestic economy, but the actual outcome depends on multiple factors including global trade tensions and domestic policies.
The Services PMI fell slightly below expectations, while the Manufacturing PMI surpassed them, suggesting a likely initial rate cut. The GBPUSD began to decline from the peak at the 1.28 handle before rebounding at the 1.26 handle, indicating likely market stagnation or consolidation.
A quick analysis of the 4-hour chart shows the price moving towards the earlier swing low at the 1.2667 level. Sellers are expected to enter at this point, raising the possibility of a drop into the 1.25 handle, while buyers might look for a rise to the 1.28 handle. The 1-hour chart suggests possible price shifts as buyers anticipate a pullback and sellers expect a price decline.
Upcoming events include the US Durable Goods Orders and the US Consumer Confidence report, with Fed’s Waller speaking tomorrow. Additionally, the US Jobless Claims will be released on Thursday and the latest US PCE and Fed Chair Powell’s summary are expected on Friday.
