GBP/USD Under Selling Pressure as USD Strengthens

The GBP/USD pair is under selling pressure, holding at approximately 1.2180 as the USD gains strength. In August, the US Core PCE Price Index met expectations, rising by 3.9%, aligning with the prior figure of 4.3%. Attention now shifts to the US ISM Manufacturing PMI for September and an upcoming speech by Fed Chair Powell.

The US Bureau of Economic Analysis reported that the PCE Price Index increased by 3.5% YoY in August, meeting market expectations. Meanwhile, the Core PCE Price Index, a crucial inflation indicator for the Federal Reserve, also grew by 3.9%, as anticipated.

Federal Reserve officials, including John Williams and Thomas Barkin, have hinted at the Fed nearing the peak for the federal funds rate and emphasizing the need for a restrictive policy stance. Powell's upcoming speech may influence the USD's direction.

In the UK, BoE policymakers have discussed the possibility of rate adjustments, but market expectations lean toward the BoE maintaining its current monetary policy, which weighs on the GBP.

With no significant UK economic data this week, GBP/USD remains influenced by USD dynamics. Key events to watch include the US ISM Manufacturing PMI for September and Powell's speech. Later in the week, the US ADP Employment Change and ISM Services PMI for September will be released, with a focus on the US Nonfarm Payrolls report on Friday.

GBP/USD continues hovering around its support at 1.2200 right now. The bearish outlook persists, and if the dollar continues to rise, this could lead to further selloff in GBP/USD.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2500	1.2400	1.2290	1.2110	1.2000	1.1900