In this news article, the British pound finds some relief as the greenback weakens slightly. Neel Kashkari, a member of the Federal Reserve, maintains a hawkish monetary policy stance and suggests the potential need for another interest rate hike by the Fed. On the other hand, the Bank of England has seen a repricing of rate cut expectations for 2024, which could result in subsequent rate hikes. The article highlights that the US GDP report and Federal Reserve speeches will be the main focal points for the day.
From a technical analysis perspective, the GBP/USD daily chart shows that the pair is trading in extreme oversold territory and has found support at the psychological level of 1.2100. However, the article suggests that this relief may be short-lived as fundamentals still favor the US dollar.
The article also mentions that retail traders are currently net long on GBP/USD, according to IG Client Sentiment data. This sentiment could be influenced by daily and weekly positional changes in the market.
Overall, the article emphasizes the importance of the US GDP report and Federal Reserve speeches in determining the future direction of the pound sterling.
