GBP Pound - British Pound Consolidates in a Range, US Inflation Data Meets Expectations

Regarding the movement of the British Pound against the U.S. Dollar, with the U.S. Dollar steadily rising this week, the GBP/USD has recently been trading within a narrow range. It is expected that the Bank of England will keep rates unchanged next week and proceed cautiously next year, which should provide some support for the British Pound. Market expectations indicate that by the end of next year, the Bank of England will cut interest rates three times, each by 25 basis points. Looking at the trend of the GBP/USD, based on technical charts, both the RSI and stochastic indicators are on the rise, and even the MACD indicator has just crossed above the signal line. It is estimated that the British Pound has established a preliminary bottom near the 1.25 level, suggesting a potential rebound. The immediate upward targets are expected around the 200-day moving average at 1.2820 and 1.2880, with a focus thereafter on the 1.30 level. Calculating based on the golden ratio, a 38.2% rebound level is at 1.2845, extending to 50% and 61.8% levels at 1.2955 and 1.3070, respectively. As for immediate support, it is anticipated around 1.2700 and 1.2630, with the next level pointing to 1.2560, while the key levels to watch remain at 1.2480/1.25.

Forecast range:
Resistance: 1.2820 - 1.2880 - 1.3000* - 1.3070
Support: 1.2700 - 1.2630 - 1.2560 - 1.2480/1.2500*

Focus:
Friday: UK October Industrial Production & Manufacturing Output (15:00)

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