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GBP/USD Forecast: Indecisive Ahead Of UK jobs, BOE Inflation Hearings And FOMC Minutes

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The GBP/USD pair on Tuesday rebounded sharply from an intraday low level of 1.3931 on a news report that the EU parliament is putting together a detailed resolution, which will call for more flexibility in future relationship talks with Britain. However, a strong follow-through US Dollar buying interest capped any additional gains and continued prompting some fresh supply on every attempted move beyond the key 1.40 psychological mark. 

Despite good two-way moves, the pair lacked any firm directional bias and remained indecisive ahead of the upcoming key releases. Today's important UK economic docket kicks-off with the release of UK monthly jobs data, wherein wage growth figures might turn out to be a key driver for the British Pound. Later in the day, the UK inflation report hearings, followed by the highly anticipated FOMC meeting minutes should assist investors to determine the pair's next leg of directional move. 

Meanwhile, the latest price action now seems to suggest that bulls might continue to struggle near the 1.4020-25 region, around 38.2 percent Fibonacci retracement level of 1.3458-1.4345 up-move. However, a clear breakthrough the mentioned hurdle might trigger a short-covering rally toward the 1.4100 handle, coinciding with a short-term descending trend-line resistance.

On the flip side, sustained weakness back below mid-1.3900s has the potential to continue dragging the pair toward 50 percent Fibonacci retracement level support near the 1.3900 handle. A follow-through selling pressure would turn the pair vulnerable to slide further, possibly toward 61.8 percent Fibonacci retracement level support near the 1.3800 round figure mark.

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Posted-In: FXStreetEurozone Forex Federal Reserve Markets

 

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