GBP/USD Forex Signal 10/12: Bullish Outlook Ahead (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the GBP/USD pair and set a take-profit at 1.3400.
• Add a stop-loss at 1.3200.
• Timeline 1-2 days.

Bearish view

• Sell the GBP/USD pair and set a take-profit at 1.3200.
• Add a stop-loss at 1.3400.

The GBP/USD exchange rate remained in a holding pattern as traders waited for the final Federal Reserve interest rate decision of the year. Bitcoin price was trading at 1.3300, a few pips below this week's high of 1.3380. It remains slightly above the November low of 1.3015.

There was no major forex news in the past few days, with most market participants waiting for the final Federal Reserve interest rate decision of the year.

A report released on Monday showed that the economy created 4.75k jobs last week after shedding over 13.5k jobs a week earlier. Another report by the Bureau of Labor Statistics (BLS) showed that the number of job openings rose slightly in September to 7.67 million, up from 7.658 million in August.

All these numbers are important because Fed officials supportive of the rate cut have cited the weakening of the labor market. They expect that the labor market will remain under pressure in the near term if rates remain high.

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Economists expect the Fed will slash interest rates by 0.25% to between 3.50% and 3.75%, the lowest level since 2022.

The other important catalyst for the GBP/USD pair will come out next week when the Bank of England (BoE) will deliver its interest rate decision. Like the Federal Reserve, analysts expect the bank to cut rates by 0.25%, even as inflation remained stubbornly high.

EURUSD Chart by TradingViewGBP/USD Technical Analysis

The daily timeframe chart shows that the GBP/USD exchange rate has rebounded in the past few days, moving from the November low of 1.3000 to a high of 1.3380. It then pulled back slightly to the important support level at 1.3300.

The pair has remained above the crucial support level at 1.3140, its lowest level on August 1. It has also remained above the 50-day moving average.

It has also formed a small bullish flag pattern, a common continuation sign. Therefore, the most likely GBP/USD forecast is bullish, with the initial target being at 1.3380. A move above that level will point to more gains, potentially to the psychological level at 1.3500.

On the other side, a drop below the key support at 1.3200 will cancel the bullish outlook and point to more downside, potentially to the key support at 1.3140.

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