GBP/USD treading water as BoE and US PCE collide in 90-minute window: who wins?

💡 DMK Insight

GBP/USD just broke below 1.355, and here’s why that matters: This level was a key support zone, and its failure could trigger further selling pressure. Traders should watch for a potential retest of this level as resistance, which could signal a bearish trend continuation. The broader context shows a strengthening dollar amid ongoing economic data releases, which could keep pressure on GBP/USD. If the pair fails to reclaim 1.355, we might see it test lower support levels, possibly around 1.340 or even 1.330 in the coming days. Keep an eye on U.S. economic indicators, as strong data could exacerbate the dollar’s strength and push GBP/USD lower. On the flip side, if GBP/USD manages to bounce back above 1.355, it might indicate a short-term reversal, but that would require solid bullish momentum. For now, the focus should be on the downside, especially with the current market sentiment leaning towards dollar strength. Watch for volatility as traders react to upcoming economic news.