The (GBP/USD) pair reached a bottom of 1.2447 last week, before the pair rebounded from this price to achieve an increase for two days in a row, as the pair reached $1.2635, with the continued decline in US bond yields and uncertainty about the next interest rate decision.
Federal Reserve Chairman Powell reaffirmed their reliance on data and kept all options open, which will help in making the appropriate decision regarding interest and monetary policy for the US Federal Reserve. In addition, US data showed great progress with the decline in inflation figures, as the last two readings of the Consumer Price Index came in at 0.16%. .
US PMIs missed expectations across the board last week, while US jobless claims remained elevated. Fed Chair Powell’s speech at the Jackson Hole symposium was mostly consistent with what he said earlier, but he stressed the need for caution going forward and that continued strength in the labor market may call for more rate hikes.
At the moment, economists do not expect that there will be another rate hike, but the upcoming non-farm payrolls and consumer price index data will be decisive to confirm or change this view.
Technically:
On the chart for the time period (day), we notice the price rebounding again from the 38% Fibonacci correction area, which buyers are trying to breach to confirm the bullish trend, but this area is still at 1.2635 constitutes strong resistance from which the price rebounded for the second time, we also note that despite this downside bounce However, the price is still below the bullish Ichmoku cloud, which may help stop the pair’s decline and rebound to the upside, but we have to wait until it returns above the current resistance 1.2635.
