GBP/USD Pullback towards 1.25 during Black Friday!

Nov 24, 2023

The GBP/USD is trading above 1.2550, recovering ground in the European session on Black Friday. The pair is underpinned by a weaker US Dollar and strong UK PMI data. However, a rebound in US Treasury bond yields and broader market sentiment could limit the upside potential of GBP/USD before US PMIs. Positive UK PMI data, indicating that the private sector returned to expansion territory in early November, helped the British Pound remain resilient against its rivals on Thursday. However, thin trading conditions on Thanksgiving Day prevented GBP/USD from gaining bullish momentum. According to the Financial Times, Bank of England (BoE) Chief Economist Huw Pill stated on Friday that the central bank could afford to ease off tight monetary policy. Pill, however, added that they had to resist the temptation to declare victory and move on from the battle against inflation. These comments did not trigger a significant reaction in GBP/USD. In the afternoon, S&P Global will release Manufacturing and Services PMI data for the US. Positive surprises in these figures could help the US Dollar maintain its position in the American session. Since bond and stock markets in the US will close early on Black Friday, the reaction to US data could remain short-lived. The price is gaining liquidity above 1.2570, where we have two swing highs at H4. Personally, I am waiting for a structural change at M15 within this H4 supply, and I will position myself short with a target of 1.25. Greetings and happy trading to all.