FXEM - EMPIRE MARKETS - Company New Article

The GBP/USD pair witnessed significant movements in the currency market. Following the Bank of England’s recent decision to cut interest rates from 4.75% to 4.5%, the pound fell by 0.9% against the dollar, reaching $1.2380.

• Monetary policy: The Bank of England’s decision to cut interest rates came in response to slowing economic growth, while the US Federal Reserve kept interest rates unchanged, reflecting a divergence in monetary policies between the two countries.
• Economic data: British economic indicators showed a slowdown in growth, with expectations of a temporary rise in inflation rates.

It is noted that the 1.2425 level represents a major resistance, as it may limit any upward attempts. If this level is exceeded, the price may head towards 1.2455 and 1.2490. In the event of a decline, breaking the 1.2360 level may push the price towards 1.2330.
With the continued negative pressure on the British pound, the pair may face challenges in achieving additional gains. Traders are advised to monitor the mentioned technical levels, in addition to following the economic and political developments in both the United Kingdom and the United States, to determine the future direction of the pair.

The Euro is facing mixed pressures amid anticipation of important economic data, as it fluctuates near the 1.0455 level after the last attempt to rise. The general trend is still subject to the influence of the US Federal Reserve’s decisions regarding interest rates and the performance of the European economy.

• US monetary policy: Continued expectations regarding the Federal Reserve’s decisions may determine the direction of the dollar, which is reflected in the performance of the Euro.
• European economic data: Any signs of a slowdown in the Eurozone economy may pressure the single currency.

Technical factors: Testing key support and resistance levels may determine the next direction.
Positive scenario: Stability above 1.0380 supports attempts to rise towards 1.0500.
Negative scenario: Breaking 1.0380 may push the price towards 1.0350 with the possibility of continuing the decline.
In general, the direction remains unclear at the moment, awaiting economic data that may determine the path of the Euro in the coming days.