Forex
GBP/USD Tumbles as Bearish Flag Pattern Takes Shape
The GBP/USD pair has been in a downward trend over the past few weeks. The recent sell-off continued after the Federal Reserve and the Bank of England (BoE) diverged on interest rates, with the Fed hiking by 0.25% and hinting at more hikes ahead.
Despite stabilizing at 1.3263 this week, which is still lower than its August high of 1.3677, the pair remains under pressure from a bearish flag pattern formed in its daily chart.
The upcoming US nonfarm payrolls (NFP) report on Friday is crucial as it forms part of the Federal Reserve's dual mandate. A hotter NFP report will raise the possibility of another interest rate hike by the Fed.