The GBP/USD currency pair is testing the 1.32 level as traders anticipate a potential rate cut by the Federal Reserve in December, with a 76% probability priced in. This movement comes amid softer U.S. employment data and speculation about Kevin Hassett as a possible Fed Chair, which has bolstered dovish expectations.
Sterling's strength is further supported by predictions of a 61 basis point easing by the Bank of England by the end of 2026. Technical analysis indicates that GBP/USD is approaching key resistance at 1.3215, with a potential breakout targeting 1.33. Market participants are also monitoring U.S. jobless claims, reduced liquidity due to Thanksgiving, and Eurozone inflation figures.
GBP/USD Nears 1.32 as Fed Rate Cut Speculation Grows
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