•GBP/USD eased on Wednesday as market participants awaited the June U.S. jobs data for clues on the Federal Reserve’s policy outlook.
• Investors are closely watching the U.S. ADP employment data due Wednesday and Friday’s nonfarm payrolls report for fresh clues on the Federal Reserve’s policy trajectory..
• Fed Chair Jerome Powell reiterated that the central bank intends to 'wait and learn more' about the impact of tariffs on inflation before considering rate cuts, once again deflecting President Trump’s calls for immediate and aggressive easing.
• Markets are currently pricing in two rate cuts by Fed totaling 50 basis points this year, with the first expected to begin in September.
•Meanwhile, in the absence of major UK data releases, markets will monitor BoE’s Alan Taylor’s appearance at the ECB’s Sintra conference.
• Technical signals are strongly bullish as RSI is at 52, daily momentum studies 5,9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.3791(23.6%fib), any close above will push the pair towards 1.3843(Higher BB)
• Strong support is seen at 1.3612(38.2%fib) and break below could take the pair towards 1.3522(June 24th low).
Recommendation: Good to buy around 1.3680 with stop loss of 1.3600 and target price of 1.3800
