GBPUSD Chart Technical Outlook set to appreciate towards 1.2690 amid a favourable risk mood
The Pound is going through a moderate recovery on Monday, favoured by a somewhat weaker US Dollar. The soft US inflation reading on Friday keeps some investors hopeful that the Fed will start cutting rates in September, which has hurt the USD.
The PCE Prices Index, the Fed’s Favourite inflation gauge remained flat in May with the core inflation decelerating to a 2.6% yearly rate, its softest level in three years.
The UK calendar is light today while, in the US, the ISM Manufacturing PMI is expected to show a contracting business activity with prices falling. This should keep the USDS on its back foot.
I expect the GBP to continue appreciating amid a mild risk appetite. The immediate target is 1.2690, followed by 1.2735. Supports are 1.2615 and 1.2555.
