(MENAFN- Daily Forex) Bearish view

• Sell the GBP/USD pair and set a take-profit at 1.3330.
• Add a stop-loss at 1.3600.
• Timeline: 1-2 days.

Bullish view

• Buy the GBP/USD pair and set a take-profit at 1.3600.
• Add a stop-loss at 1.3330.

The GBP/USD exchange rate remained unchanged on Monday morning as investors predicted that the Federal Reserve would deliver more rate cuts in the next meeting. It was trading at 1.3500, down from the year-to-date high of 3790 and BoE Divergence

The GBP/USD exchange rate wavered after a series of economic numbers from the United States reinforced the case for Federal Reserve interest rate cuts.

A report by ADP showed that the economy lost over 36,000 jobs in September, a sign that the labor situation was not improving under Donald Trump. This report offered more details about the labor market now that ADP did not publish the official report last Friday.

Another report showed that the economy is softening as companies come to terms with Donald Trump's tariffs. A report by the ISM showed that the services sector cooled in September, moving to 50 from the previous 52. The figure was weaker than the median estimate of 51.7.

A closer look at the report showed that business activity cooled to 49.9 in October from the previous 54, the worst reading since the Covid pandemic.

Another data by the Bureau of Labor Statistics confirmed that there are now more unemployed Americans than there are job vacancies. These lingering concerns about the economy means that the Federal Reserve will continue with its guidance, which pointed to a cut in the next meeting.

The Bank of England, on the other hand, is expected to maintain interest rates steady as the country goes through a stagflation. Recent data showed that the headline Consumer Price Index rose to 3.6% in August, while the economic growth stalled.-p

img- src= data-src= alt=image lazy=loading class="img-responsive center LazyLoading">GBP/USD Technical Analysis

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The daily timeframe chart shows that the GBP/USD exchange rate has pulled back in the past few days, moving from the August high of 1.3720 to 1.3500 today. It is consolidating along the 50-day Exponential Moving Average and slightly above the 23.6% Fibonacci Retracement level.

The pair has formed a double-top pattern whose neckline is at 1.3140, which coincides with the 38.2% Fibonacci Retracement level.

Therefore, the pair will likely remain under pressure this week, with the next key point to watch being at 1.3339, its lowest level on September 26. A move above the important resistance level at 1.3535 will invalidate the bearish outlook.

EURUSD Chart by TradingView

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