GBPUSD towards 1.28!
The GBP/USD pair shows signs of recovery toward the 1.2700 level during European trading, supported by a moderate weakening of the US Dollar due to improved market sentiment and profit-taking ahead of the release of the US JOLTS data. Fundamentally, the pair is consolidating losses after a decline of more than 0.5% recorded on Monday, limiting the damage thanks to the drop in the EUR/GBP pair, indicating capital flows from the Eurozone to the United Kingdom. Investors are closely monitoring the US JOLTS Job Openings data: a figure equal to or above 8 million could strengthen the Dollar, generating additional bearish pressure on GBP/USD. Moreover, attention is focused on the speeches by Federal Reserve members, with recent statements highlighting uncertainties about a potential rate cut in December. The current probability of a 25 basis points rate cut stands at 72%, according to the CME FedWatch Tool, but more cautious signals from officials could keep the Dollar in a strong position. Therefore, the direction of the pair remains tied to the evolution of macroeconomic data and monetary policy, with a consolidation dynamic reflecting the balance between technical and fundamental factors.
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