• GBP/USD steadied on Monday as investors awaited key economic data that could set the course for UK interest rate.
• On Friday, GBP/USD moved within a 1.3343–1.3399 range after weaker-than-expected U.K. GDP figures weighed on sterling.
• Focus now turns to a busy run of macro releases. In the U.S., November non-farm payrolls are due on Tuesday, with job growth forecast at 40K and the unemployment rate seen at 4.4%..
• In the U.K., employment and inflation data are scheduled for Tuesday and Wednesday respectively, with headline CPI expected to print at 3.5% year on year.
• These releases will feed directly into expectations for the Bank of England’s policy decision on Thursday, where a 25-basis-point rate cut to 3.75% is widely anticipated.
• Immediate resistance is located at 1.3398(38.2%fib), any close above will push the pair towards 1.3459(Higher BB)
• Strong support is seen at 1.3325(50%fib) and break below could take the pair towards 1.3250(61.8%fib).
Recommendation: Good to buy around 1.3380, with stop loss of 1.3300 and target price of 1.3450
