GBP/USD Rebounds Despite Weak UK Data

The GBP/USD pair rebounded from losses driven by positive US economic data. US inflation, with an annual growth rate of 3.7%, exceeded expectations in September, while Initial Jobless Claims for the week ending October 6 showed slight improvement. This upbeat US data has raised questions about the Federal Reserve's monetary policy.

Conversely, the Pound Sterling faced pressure due to weak UK data. August's Manufacturing and Industrial Production figures fell short, with manufacturing production down 0.8% and industrial production declining by 0.7%. Although August's UK Gross Domestic Product (GDP) met expectations, the previous month was revised downward.

The Bank of England (BoE) lowered its growth forecast, hinting at limited rate increases. Market watchers are awaiting the US Michigan Consumer Sentiment Index and insights from BoE Governor Andrew Bailey's speech to understand the economic landscape in both countries.

Similar to EUR/USD, GBP/USD has retraced from its resistance and is currently stabilizing, entering an accumulation phase while awaiting a possible reversal. The next target if a breakout happens is at 1.2450.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2600	1.2450	1.2300	1.2200	1.2100	1.2000