GBP Treads Water Ahead of Crucial US Employment Figures
The British Pound (GBP) has largely maintained its value against the US Dollar (USD), trading at around 1.3460 as of Thursday morning, following a slight decline from Wednesday's highs at 1.3486.
This leaves the GBP/USD pair within a narrow range of 100 pips, with bulls facing resistance below 1.3500 and support above 1.3400.
The Pound gained some strength on Wednesday due to upward revisions in July's S&P Global Services PMI figures and downbeat US employment readings, which cast doubt on Friday's Nonfarm Payrolls report and reduced expectations for Federal Reserve (Fed) rate hikes.
Scotiabank strategists describe the Pound's tone as 'neutral/bullish', citing a solid rise in Cable last week and bullish trend oscillators suggesting upside potential.
However, MUFG analysts warn that concerns over Fed independence are putting additional pressure on the USD, with doubts about President Trump's influence on monetary policy undermining confidence in US assets.