GBPUSD buyers seek opportunities to rebound to 1.355

Since early this week, the GBPUSD currency pair has been pulling back from its monthly high, set slightly below 1.36. Quotes are now getting closer to the 1.337 support level, which gains significance as it converges with the middle Bollinger Band and the 100-day exponential moving average (EMA100). At this point, sellers of the pound against the US dollar may begin to profit from their short positions, potentially triggering a price recovery. The 1.355 level could serve as the initial target for the rebound.

Technical indicators also hint at an upward reversal in GBPUSD. The MACD is returning to positive territory, while the Stochastic Oscillator is approaching the oversold zone. Over the past two months, three similar technical setups have preceded the completion of a downward move and a subsequent shift to the upside. If the rebound from the support at 1.337 does not occur, GBPUSD buyers will have another chance at 1.32. The middle Bollinger Band and the EMA200 will soon cross near this point.

Friday’s major event will be Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. His colleagues have recently expressed divergent views on a potential rate cut at the central bank’s meeting on September 17. So, Fed officials lack consensus on this matter. The US regulator is facing a dilemma, which becomes more important each day, whether to continue its focus on curbing inflation or to resume monetary easing to support the labor market.

In the meantime, the state of the US labor market is getting increasingly worrisome. Yesterday’s statistics showed that new jobless claims reached a three-month high last week, while the total number of people receiving such benefits hit the highest level since November 2021 (1.972 million). Analysts surveyed by Reuters are growing concerned about the outlook for August. The upcoming employment report, scheduled for September 5, could put additional pressure on the US dollar.

Consider the following trading strategy:

Buy GBPUSD near the 1.337 level. Take profit: 1.355. Stop loss: 1.32.