GBP/USD Strategy – Awaiting Rate Decisions, GBP May Retreat

Fundamental Analysis:

Yesterday, the UK’s November claimant count for unemployment benefits was revised down from the previous value of 26,700 to -10,900. Additionally, the November unemployment rate fell from 4.7% to 4.63%, and average wages increased, reflecting an improvement in employment conditions. After the data release, the market quickly reduced its expectations for a Bank of England rate cut, providing some support to GBP/USD performance.

On the other hand, with the U.S., Japan, and UK central banks all holding rate decisions tomorrow, the U.S.'s ability to withstand risks remains stronger than other countries. Furthermore, policies under Trump could further bolster the dollar. As a result, non-USD currencies are anticipated to face short-term correction risks.

Technical Analysis:
On the GBP/USD 1-hour chart, the pair climbed higher but then retreated and hit new recent lows, indicating increased selling pressure. If the subsequent rebound fails to reclaim the resistance level, the pair may have further downside correction potential. Aggressive traders are advised to adopt a bearish approach.

Trading Recommendations:
Short GBP/USD at 1.2707.

Stop-loss: Above 1.2730. Target: 1.2653–1.2682.

Support Level: 1.2653 Resistance Level: 1.2707

Note: Trading involves risk, and these suggestions do not guarantee profit. Investors should evaluate their own capital and position management strategies.