GBP/USD Market Outlook & Analysis (Bullish)**GBP/USD Market Outlook & Analysis**
**📊 Price Action & Key Levels**
- **GBP/USD trades around 1.29300** in a narrow range, struggling for momentum.
- Last week’s **high of 1.29900** remains a key resistance level.
- **Key Support Levels:**
- **1.29000 (Psychological level)** → A breakdown may trigger more downside.
- **1.2850 (Next key support)** → Watch for buying interest.
- **Key Resistance Levels:**
- **1.2990 (Last week's peak)** → A breakout could open doors for **1.3050+.**
**🌍 Fundamental Drivers**
- **USD Weakness:**
- Fears that **Trump’s tariffs could slow the US economy** weigh on the dollar.
- Weak US inflation and a **cooling labor market** increase **rate cut expectations** for 2024.
- University of Michigan’s **Consumer Sentiment Index fell** to a 2.5-year low, fueling bearish sentiment.
- **GBP Struggles Despite BoE Expectations:**
- **UK GDP contracted by 0.1% in January**, capping the pound’s upside.
- However, **expectations that the BoE will cut rates more slowly than the Fed** provide support for GBP/USD.
**📅 Key Events to Watch**
- **Monday:** US **Retail Sales & Empire State Manufacturing Index**.
- **Wednesday:** **FOMC meeting** → Market expects no rate change but will closely watch guidance.
- **Thursday:** **BoE meeting** → If policymakers signal slower rate cuts, GBP could strengthen.
**📈 Trading Strategy & Takeaways**
- **Bullish bias above 1.29300** if the dollar remains under pressure.
- **Break above 1.29400** could see GBP/USD testing **1.3050** in the short term.
- **If 1.29000 breaks,** watch for a potential dip toward **1.28500** before buyers step in.
- **Major volatility expected midweek** with FOMC & BoE—trade cautiously!
📢 **Final Word:** GBP/USD remains in a tug-of-war between a weak USD and soft UK data. Stay patient and wait for confirmation before making moves! 💹🔥 #Forex #GBPUSD
