Jakarta, GIC Trade – The pound sterling tried to move up as the US Dollar Index turned volatile. The release of US Retail Sales data will prove further clarity on the Federal Reserve's monetary policy actions. 
 
Meanwhile, the appeal for risk-perceived assets has increased as investors shift their focus to strengthen expectations of a pause in policy tightening by the Federal Reserve (Fed).
 
The pound is likely to remain active ahead of the UK Employment data, which is scheduled for Tuesday. The shortage of labor in the UK market has been the main reason behind the tight labour market conditions.
 
Previously, Bank of England Governor Andrew Bailey had pushed interest rates by 25 basis points (bps) to 4.5%. Regarding inflation guidelines, Bank of England policymakers believe that UK inflation will fall to 2% by early 2025.
 
On the other hand, news from Uncle Sam's country pointed to political turmoil after Friday's delay in US debt ceiling negotiations, US President Joe Biden and Republican House of Representatives Joseph McCarthy will meet again on Tuesday. 
 
The former wants approval to raise the Federal borrowing limit but not at the expense of the President's initiative and the latter is ready to approve a debt ceiling hike if U.S. President Joe Biden agrees to cut spending initiatives to reduce the budget deficit.
 
The Congressional Budget Office warned on Friday that the United States faces a "significant risk" of defaulting on payment obligations in the first two weeks of June without raising the $31.4 trillion government debt ceiling, adding that payment operations will remain uncertain throughout May.
 
Fundamentally, the political turmoil that occurred in the US made the greenback weaken slightly, while the demand for risky assets such as the pound sterling currency became a special attraction after market participants saw a pause in the Fed's monetary policy.

Technical Analysis

 
GBP/USD on the 1-hour period tried to move upwards touching the resistance level at 1.24860 until heading towards the next resistance level at 1.25280. The uptrend can also be seen from the FXBot template, where the GBP figure is higher by 5.0 than the USD figure of 1.0.

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