The GBP/USD pair is holding steady near 1.3590 in early European trading Friday as traders recalibrate their Bank of England rate expectations while awaiting critical monetary policy signals from the Jackson Hole symposium. Market participants have reduced bets on a BoE rate hike this year, creating cautious trading conditions for sterling. Despite the tempered rate outlook, the currency pair maintains a bullish technical stance as it continues trading above the key 100-day simple moving average, suggesting underlying support remains intact. The immediate focus now shifts to speeches from central bank officials at Jackson Hole, where any hawkish commentary from Federal Reserve leadership could pressure the pair lower, while dovish signals might provide upside momentum for cable. Traders are positioning defensively ahead of the event, contributing to the subdued price action in morning European markets.
FXnCO Insight
Watch for Jackson Hole volatility with 1.3600 as immediate resistance and the 100-day SMA as critical support for directional trades.
Source: FXStreet