FxWirePro: GBP/USD holds near 3-week high, scope for further gains

• GBP/USD held near 3-week high  on Tuesday   as  greenback continued to soften as expectations mount for more aggressive interest rate cuts by the Federal Reserve.

• U.S. job growth slowed sharply in August, while the unemployment rate climbed to a near four-year high of 4.3%, underscoring a weakening US labor market and reinforcing expectations of a Fed rate cut next week.

• Expectations for stronger Fed easing are growing, as money markets price in a 25-bp cut and see a 12% chance of a 50-bp cut, as per CME data.

•UK fiscal concerns have eased somewhat, while political noise from Prime Minister Starmer’s cabinet reshuffle last Friday was largely shrugged off by markets.

• Looking ahead ,investors await U.S. job revisions that may show deeper weakness, strengthening the case for Fed rate cuts.

. • At GMT 12:03, the pound was up  0.07% to 1.3554 against the dollar.

•   Immediate resistance is located at 1.3590(Higher BB), any close above will push the pair towards 1.3629(38.2%fib)

•  Strong support is seen at 1.3531(50%fib) and break below could take the pair towards 1.3495(SMA 20).

  Recommendation: Good to buy around 1.3500  with stop loss of 1.3430 and target price of 1.3560