GBP/USD Price News, Forecast: Pound Steadies Near 1.3230 As Markets Await Fed

At 11:30 (GMT+2), the UK will release fresh lending and mortgage data. October mortgage approvals are expected to decline from 65.95K to 64.00K as households postpone property purchases amid rising fees across key categories. Net consumer lending is projected to ease from £7.0 billion to £6.4 billion, remaining well above the June low of £1.17 billion. Investors will also follow remarks from Bank of England policymaker Megan Greene, who said the government’s plan to cut household electricity bills by £150 per year could help anchor inflation expectations. She added that wage-growth surveys conducted by the central bank point to future pay increases of around 3.5%, above the target level.

The US dollar index (USDX) is trading near 99.40. This week brings a heavy US macro agenda. Today at 16:45 (GMT+2) and 17:00 (GMT+2), markets expect manufacturing activity prints from S&P Global and the ISM: the S&P index is projected to soften from 52.5 to 51.9, while the ISM gauge may rise slightly from 48.7 to 49.0. According to CME FedWatch, the probability of a 25-bp rate cut at the December FOMC meeting has climbed to 87.4%, up from 84.0% last week.

Support and resistance

On the daily chart, the pair is correcting well above the lower boundary of the descending channel with dynamic limits near 1.3500–1.2950.

Technical indicators deliver a bullish signal: the fast EMAs of the Alligator indicator are approaching the signal line from below, while the AO histogram is forming rising bars even in negative territory.

Resistance levels: 1.3310, 1.3490.

Support levels: 1.3160, 1.2950.

GBP/USD trading scenarios

Long positions may be considered after a breakout and consolidation above 1.3310, targeting 1.3490. Stop-loss: 1.3250. Time horizon: 7+ days.

Short positions may be considered after a breakdown below 1.3160 with a target at 1.2950. Stop-loss: 1.3230.