GBP to USD Forecasts: Bears Eye Sub-$1.18 on US Stats

It is a quiet session for the GBP/USD. There are no UK economic indicators for the markets to consider today. The lack of stats will leave the GBP/USD in the hands of market risk sentiment ahead of the US session.

However, investors should consider Bank of England Monetary Policy Committee Member speeches. With no Monetary Policy Committee Members on the calendar to speak, investors should monitor chatter with the media. MPC members would need to deliver particularly hawkish speeches to shift monetary policy divergence that firmly favors the dollar.

GBP/USD Price Action

This morning, the GBP/USD was down 0.06% to $1.18167. A mixed start to the day saw the GBP/USD rise to an early high of $1.18358 before falling to a low of $1.18098.

Technical Indicators

The Pound needs to move through the $1.1903 pivot to target the First Major Resistance Level (R1) at $1.1986. A return to $1.19 would signal an extended breakout session. However, the Pound would need Fed Chair Powell and US stats to support a breakout session.

In the event of an extended rally, the GBP/USD would likely test resistance at $1.20 but fall short of the Second Major Resistance Level (R2) at $1.2147. The Third Major Resistance Level sits at $1.2391.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1.1742 in play. However, barring a US data-fueled sell-off, the GBP/USD should avoid sub-$1.17 and the second Major Support Level (S2) at $1.1659. The Third Major Support Level (S3) sits at $1.1415.

The US Session

Looking ahead to the US session, it is a busier day on the US economic calendar. ADP nonfarm employment change numbers for February and the JOLTs Job Openings report for January will be in the spotlight.

Following Fed Chair Powell testimony from Tuesday, a solid set of numbers would support another GBP/USD slide. However, investors should consider the second day of Powell testimony that will follow the labor market numbers.