Jakarta, GIC Trade – The pound remained pressured amid market caution ahead of a keynote speech from BoE leaders, the Fed. Gilt/UK two-year bonds surged to a 15-year high, the market placing a 20% bet on the BoE's peak rate of 6.5%. 
 
While the U.S. data was upbeat, concerns emanating from China allowed the U.S. Dollar to consolidate weekly gains. The Fed's Powell has a tough task convincing the bullish bias rather than the BoE's Bailey but the UK recession could lure Cable/sterling down.
 
GBP/USD held on to a slight decline around 1.2730 ahead of Wednesday's London open, reversing the previous day's rebound amid mixed catalysts of late.
 
Even so, growing concerns about higher interest rates at the Bank of England (BoE) and the resulting UK recession weighed on the price of the Pound. In contrast, mostly upbeat U.S. data joined mixed concerns about China to push cable sellers.
 
On the other hand, hopes for more stimulus from China contrasted with growing concerns about a slower economic recovery in Beijing, as well as fears of a Sino-American upheaval due to the latest AI restrictions on Chinese chip manufacturing companies, luring GBP/USD to the bears.
 
Furthermore, a lot of US data allowed the US Dollar to reduce intraday losses and increase hawkish Fed bets, which in turn drove the Pound Sterling up lately.
 
Against this backdrop, S&P500 Futures trimmed their biggest daily surge in two weeks with mild declines while U.S. Treasury bond yields remained pressured after rising in the last two days in a row to illustrate uncertain market momentum.
 
Going forward, speeches from Bailey BoE and Fed Chair Powell will be crucial to observe the live movement of GBP/USD. The main attention, however, will be on the woes of the UK recession, which in turn could provide a breath of fresh air for GBP/USD.
 
Fundamentally, upbeat US data and recession fears in the UK have weighed on the pound further price. Then how technically, see the following analysis:
 
Technical Analysis

 
GBP/USD on the 1-hour period tried to move down, touching the support level at 1.27300 until heading towards the next support level at 1.26730. The downward trend can also be seen from the FXBot template, where the GBP figure is lower by 3.2 than the USD figure of 6.4. While the bearish bias is also supported by a sell signal indicated by a red arrow.

This GBP/USD Forex analysis is a fundamental and technical view used by the author, and does not constitute advice or a solicitation. To get more information click on the image below.