British Pound Price Analysis: GBP/USD Lacks Momentum Prior to BoE
Pound, Dollar Talking Points:
- GBP/USD under pressure as prime minister Boris Johnson remains under scrutiny
- Bank of England (BoE) expected to rate hikes, an additional catalyst for Sterling
- US NFP data expected to influence price action
The British Pound has managed to edge slightly higher as investors price in higher rates. With inflation data weighing on markets, the US employment data and the release of non-farm payrolls on Friday will likely pose as an additional catalyst for price action.
Find out more about the impact of interest rates on the foreign exchange market
DailyFX Economic Calendar
Although the greenback currently remains the dominant currency for GBP/USD, economic data may still influence the trajectory of the imminent move.
GBP/USD Technical Analysis
At the time of writing GBP/USD has risen higher, threatening channel resistance. As price action edges towards the 23.6% Fibonacci retracement level of the 2020 – 2021 move, the next level of resistance resides at the key psychological of 1.400.
Chart prepared by Tammy Da Costa using TradingView
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.