Meanwhile, technology company Google Inc. announced that it will invest £5.0 billion in the UK economy over the next two years, particularly in capital expenditures, research and development in artificial intelligence for science and healthcare as part of the Google DeepMind project. This statement was made ahead of the opening of a new data center in Waltham Cross, Hertfordshire. According to Alphabet Inc. and Google Inc. Chief Investment Officer Ruth Porat, this will add £400.0 billion to the economy by 2030.
Traders are also preparing for the outcome of the two-day US Federal Reserve meeting, which will conclude on Wednesday at 20:00 (GMT+2). Markets are confident that the regulator will launch a new cycle of monetary easing by cutting the interest rate by the standard 25 basis points. Fed Chair Jerome Powell will also present updated macroeconomic forecasts, which will help assess the prospects for further easing through the end of 2025. The Bank of England will meet on September 18 at 13:00 (GMT+2). Unlike the US regulator, analysts expect no changes to monetary policy, giving officials more time to fully assess the situation.
Today at 14:30 (GMT+2), US retail sales data for August will be published, followed at 15:15 (GMT+2) by industrial production figures. Monthly retail sales are expected to slow from 0.5% to 0.3%, while the annual figure should remain at 3.9%. Excluding autos, sales could rise from 0.3% to 0.4%. Industrial production is likely to contract by another 0.1%.
Support and resistance levels
Bollinger Bands on the daily chart show an uncertain attempt at growth: the price range is widening, opening the way for bulls to new local highs. MACD is rising, maintaining a relatively firm buy signal (the histogram is above the signal line). Stochastic shows a similar dynamic but is near maximum levels, indicating overbought risks for the pound in the ultra-short term.
Resistance levels: 1.3632, 1.3700, 1.3750, 1.3788.
Support levels: 1.3600, 1.3554, 1.3500, 1.3450.
Trading scenarios and GBP/USD forecast
Long positions can be opened after a confident breakout above 1.3632 with a target at 1.3750. Stop-loss — 1.3570. Implementation period: 2–3 days.
A rebound from 1.3632 as resistance followed by a breakdown below 1.3600 may serve as a signal to open new short positions with a target at 1.3500. Stop-loss — 1.3650.
Scenario
| Timeframe | Intraday |
| Recommendations | BUY STOP |
| Entry point | 1.3635 |
| Take Profit | 1.3750 |
| Stop Loss | 1.3570 |
| Key levels | 1.3450, 1.3500, 1.3554, 1.3600, 1.3632, 1.3700, 1.3750, 1.3788 |
Alternative scenario
| Recommendations | SELL STOP |
| Entry point | 1.3600 |
| Take Profit | 1.3500 |
| Stop Loss | 1.3650 |
| Key levels | 1.3450, 1.3500, 1.3554, 1.3600, 1.3632, 1.3700, 1.3750, 1.3788 |