Will GBP/USD Reverse Course?

4. Okt. 2023

GBP/USD showed a strong daily rebound, surpassing the level of 1.2150 on Wednesday. The US Dollar is under bearish pressure after ADP reported a modest increase in private sector employment in September. Currently, the pair is around 1.2130, close to the upper limit of a descending regression channel. Buyers could remain interested if the level of 1.2130 confirms as support, aiming for 1.2170 as the next target before 1.2200. On the other hand, sellers may step in if the pair falls below 1.2130. After a low in Asia, GBP/USD gained momentum, suggesting a possible extension of the rebound if it holds above 1.2130. US stocks suffered significant losses due to the Federal Reserve's more restrictive bets in response to increased job openings, pushing the 10-year Treasury yield to its highest level since 2007. If US stocks show strong gains, GBP/USD could continue to rise. ADP predicts an increase in private sector employment in September, and if the data exceeds expectations, the US Dollar may be strengthened. The Services PMI could influence the demand for the US Dollar based on its reading. Finally, there is a technical analysis suggesting a possible price reversal, with key points at 1.2240. Happy trading to everyone from Nicola, CEO of Forex48 Trading Academy.