HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

GBP/USD: Insights and Projections for the Upcoming Week


12 January 2024

Stephane Dubois   Written by Stephane Dubois

As the week unfolds, market participants find themselves in a pivotal moment, closely monitoring the Federal Reserve's evolving stance and GBP/USD's technical dynamics. Let's delve deeper into these crucial factors shaping the currency pair's outlook. Following the release of the latest US Consumer Price Index (CPI) data, the financial world's collective gaze has turned towards upcoming public addresses from Federal Reserve officials. These speeches hold the key to unraveling the trajectory of the US dollar. Given the recent twists and turns in the global economic landscape, traders should brace themselves for the possibility of the central bank adopting a more hawkish stance.

The implications of such a shift are significant. A more hawkish tone implies the Fed's reluctance to embark on a path of interest rate cuts, a notion at odds with Wall Street's expectation of roughly 135 basis points in easing throughout the year. If this scenario materializes, it could act as a catalyst for higher yields and bolster the US dollar's standing on the global stage.

Richmond Fed President Thomas Barkin, in his response to the inflation data release, emphasized that December's figures did not offer conclusive guidance to Federal Reserve officials regarding potential rate cuts in the coming year. This ambiguity has added an extra layer of complexity to the central bank's policy stance.

GBP/USD: Insights and Projections for the Upcoming Week

Upcoming Speech by Neel Kashkari

In the lineup of Federal Reserve officials, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, is scheduled to deliver a speech on Friday morning. His insights and comments could provide further clarity on the central bank's outlook, particularly in light of the evolving economic landscape.

GBP/USD Technical Levels

Turning our attention to the GBP/USD currency pair, technical levels are a crucial aspect of forecasting its trajectory. Despite a recent dip in value, the GBP/USD managed to stay above the critical channel support level situated around 1.2675. Maintaining this technical support is imperative for the currency pair's stability. Failure to do so may trigger a deeper decline, potentially probing towards the psychological level at 1.2600. Should this support be breached, further downside risks could expose the 200-day simple moving average.

On the flip side, if the GBP/USD manages to strengthen and surpasses the resistance barrier at 1.2760, it could pave the way for a more optimistic scenario. A break above this level may set the stage for an ascent towards the highs reached in December, positioned above the 1.2826 threshold. Achieving this target could potentially catalyze a rally towards the psychologically significant level at 1.3000.

In conclusion, the GBP/USD pair's fate is intertwined with the Federal Reserve's communication strategy and its evolving stance on interest rates. As traders brace for potential shifts in the central bank's outlook, they will also meticulously track technical levels in the currency pair to navigate the dynamic forex landscape in the week ahead.


RELATED

Dollar slides as September Fed cut nearly a done deal

NY Fed President Williams says rates likely to fall; Anxiety about Trump’s efforts to influence Fed policy intensifies; Spotlight turns to PCE inflation numbers and next week’s NFP; S&P 500 hits new record, but Nvidia slides after earnings results.

28 Aug 2025

Dollar extends gains, kiwi tumbles after RBNZ

Dollar strong ahead of Powell’s Jackson Hole speech; Yen extends advance following calls for a BoJ hike; Kiwi tumbles after ultra-dovish RBNZ rate cut; Wall Street pulls back as investors await Powell.

20 Aug 2025

Dollar and stocks recoup some NFP-led losses, yen and gold ease back

Dollar and stocks on steadier footing as yen and gold rallies cool; But tariff mess and Trump’s firing of jobs data chief keep risk appetite in check.

4 Aug 2025

Dollar wobbles despite US equity strength

Both dollar and US equities on course for a positive week; Fed doves push for a July rate cut, but chances remain extremely low; Yen positions for Sunday’s elections that could open pandora’s box.

18 Jul 2025

Dollar gets a boost by US inflation numbers

Dollar and Treasury yields rise; UK CPI accelerates, but traders still expect August BoE cut; Wall Street pulls back, gold surrenders to dollar strength.

16 Jul 2025

Dollar fights an uphill battle amidst mounting tariff pressure

The US dollar continues to exhibit some signs of life, but it is still meeting strong resistance from unwilling investors who remain extremely negative about the greenback’s short-term outlook.

9 Jul 2025

Fed’s hawkish hold and Middle East flare up boost the dollar

Fed holds rates steady, revises inflation projections up - Dollar gains, also aided by escalating Isreal-Iran tensions - Oil rebounds on increasing worries about supply disruption - SNB cuts rates by 25bps, BoE expected to stand pat.

19 Jun 2025

Trade optimism rises ahead of US-China talks but dollar slips

All eyes on US-China trade talks before attention turns to US CPI report; Hopes high ahead of London talks amid progress with India and Japan; But dollar unable to extend post-NFP gains as LA riots cast a shadow.

9 Jun 2025

US data hurt the dollar, ECB to cut rates again

The dollar slipped against all its major peers on Wednesday, reversing a large portion of the recovery it made on Tuesday.

5 Jun 2025

Dollar's resilience could be tested after Monday's surge

US stocks and the dollar experienced considerable moves on Monday. US CPI in focus today, but investors are craving Fed commentary. Gold is climbing today, as oil maintains most of Monday’s gains.

13 May 2025

US dollar struggles continue ahead of Fed meeting

With the US dollar gradually chipping away at the euro’s recent outperformance, and dollar/yen’s latest uptrend remaining intact, investors will face a lighter data calendar today.

6 May 2025

Dollar suffers as Trump pressures the Fed

Dollar underperformance lingers, as gold surpasses $3,500; US yields climb; Treasury auctions take centre stage.

22 Apr 2025

EUR/USD extends gains as trade war escalates

EUR/USD surged to 1.1044 on Wednesday and continues to climb, supported by mounting pressure on the US dollar amid escalating trade tensions.

9 Apr 2025

Dollar and stocks sink as Trump unleashes "Liberation Day"

Trump announces reciprocal tariffs: no country spared; Major escalation in trade war sparks selloff in risk assets and US dollar; US futures plunge by more than 3%, but gold rally runs out of breath.

3 Apr 2025

Dollar seeks direction amidst mixed newsflow

The US dollar is trying to find its footing after shedding almost 4.5% against the euro last week, with the dollar index recording its worst weekly performance since November 2022.

10 Mar 2025

Dollar falls amid trade war escalation

The dollar extended its tumble against most major currencies, corroborating the notion that traders are not so worried about tariffs refueling inflation but seem increasingly concerned about the growth outlook of the US economy.

5 Mar 2025

Dollar steady, RBA cuts rates, RBNZ takes the torch

Dollar stabilizes ahead of tomorrow's Fed minutes. Yen gains on BoJ hike bets, euro slides - RBA cuts rates but sounds cautious about future moves. RBNZ to deliver another bold cut, focus to fall on guidance.

18 Feb 2025

GBP/USD rises as dollar weakens and market shrugs off Trump's threats

GBP/USD surged to a one-and-a-half-month high near 1.2592, taking advantage of a weaker US dollar and improved investor sentiment.

17 Feb 2025

Japanese yen strengthens as economic data and weaker US dollar provide support

The USD/JPY pair dropped to 153.38 on Wednesday, marking a seven-week low as the yen gained strength following positive domestic economic data and a weakening US dollar.

5 Feb 2025

Crypto: Quiet Recovery

The crypto market has increased by 0.4% to $3.57 trillion over the last 24 hours but is still 1.4% below last week's levels.

3 Feb 2025

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.