• GBP/USD edged lower on Monday as dollar recovered after a steep fall last week that followed remarks from Federal Reserve Chair Jerome Powell that raised expectations of a rate cut next month.
•. Markets are now pricing in a strong likelihood of easing next month, traders are awaiting key U.S. data, including Friday’s PCE inflation report and next week’s payrolls, for further confirmation.
• UK financial markets remained shut on Monday for the Summer Bank Holiday, leaving trading volumes thinner across Europe.
• No high-impact U.S. economic indicators are due on Monday, leaving markets to focus on global drivers.
• Immediate resistance is located at 1.3549(38.2%fib), any close above will push the pair towards 1.3642(Higher BB)
• Strong support is seen at 1.3416 (20 SMA) and break below could take the pair towards 1.3319(50%fib).
Recommendation: Good to buy around 1.3470 with stop loss of 1.3400 and target price of 1.3560
