GBP/USD Forecast Ahead of UK and US Inflation Data
The GBP/USD price continued its rebound as investors reacted to the latest UK GDP data. It rose to a high of 1.1700, which was the highest level since August 30th. The pair rose by 2.60% from the lowest level this month.
UK inflation and jobs data ahead
The GBP/USD price rose even after the relatively weak UK GDP data. According to the Office of National Statistics (ONS), the country’s economy expanded by 0.2% in July, which was lower than the median estimate of 0.3%.
The bureau noted that the country’s manufacturing and industrial production data. These numbers revealed that the two rose by 1.1% in July, which was lower than the median estimate of 1.6% and 1.9%, respectively. Additional data showed that the country’s trade deficit narrowed to 19.36 billion pounds.
The next key catalyst for the GBP/USD price will be the upcoming US jobs numbers scheduled for Tuesday. Analysts expect the data to show that the country’s unemployment rate remained at 3.4%.
These numbers will be followed by the latest US and UK consumer and producer price index data. On Tuesday, analysts expect the data to show that US inflation dropped from 8.7% to 8.1% as the price of gasoline, airfare, and clothing dropped. On the other hand, core inflation is expected to have risen.
The ONS will then publish inflation data on Wednesday. Analysts expect the data to show that the headline CPI rose from 10.1% to 10.2%. Core inflation is expected to have risen from 6.2% to 6.3%.
These numbers will be followed by the latest UK retail sales data on Friday. The Bank of England (BoE), which was expected to deliver its decision on Thursday, decided to postpone its hike.
GBP/USD forecast
The four-hour chart shows that the GBP/USD price has been in a strong bullish trend in the past few days. It managed to rise above the key resistance at 1.1600, which was the highest point on September 6. It also moved above the 25-day and 50-day moving averages.
The awesome oscillator moved above the neutral level while the MACD and the Relative Strength Index (RSI) continued rising. Therefore, the pair will likely continue rising as bulls target the key resistance at 1.1800. Learn more about how to send money to the UK.
