Swati believes there were little indications that growing pay demands increased the possibility of a wage-price spiral. She warned that the BoE could worsen an anticipated recession if it raised borrowing prices even further. The dollar weakened amid increased risk sentiment. Today’s GBP/USD outlook is bullish as the dollar weakens. The USD struggled to gain ground on Monday, stuck at five-month lows as traders ignored the stronger-than-expected US jobs data. Growing expectations of China reopening boosted risk sentiment. –Are you interested in learning more about buying NFT tokens? Check our detailed guide- Swati Dhingra, who sets interest rates for the Bank of England, stated in an interview on Saturday that there were little indications that growing pay demands increased the possibility of a wage-price spiral. Dhingra voted for a 50bps rate hike last month, while most of her colleagues supported a 75 basis-point growth. She later warned lawmakers that the upcoming recession might deepen if the central bank increased borrowing costs even further. She added that the labor market showed few indications that workers’ demand for wage raises would result in persistently high inflation, which has now risen to a 41-year high of 11.1%. Britain is experiencing a winter of industrial unrest as workers—from teachers and rail workers to nurses and paramedics—go on strike for better pay as they contend with a rising cost of living. GBP/USD key events today The UK will release its composite and services PMI data later today. These gauge purchasing managers’ level of activity. A value above 50 denotes sector expansion, whereas a reading below 50 denotes sector decline. From the US, investors will pay attention to the non-manufacturing PMI, which is an indicator of the overall economic state of the non-manufacturing sector. Get FREE Forex Signals Now! GBP/USD technical outlook: Bearish RSI divergence pointing at retracement The chart above shows the price well above the 30-SMA and the RSI above 50. This is a sign that the current trend is bullish. The price has just broken above the 1.2300 key resistance level and will likely make a higher high. But looking at the RSI reveals a bearish divergence with the price that denotes weakness in the bullish move. –Are you interested in learning more about British Trade Platform Review? Check our detailed guide- Bears might come in at this point, as the RSI is also overbought. The price will have to break back below 1.2300, 1.2152, and the 30-SMA for the bearish divergence to play out. The bullish trend will continue if the 30-SMA holds as support and the price bounces higher. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next EUR/USD Price Wobbling Below 1.06 Ahead of US ISM Olimpiu Tuns 2 months Swati believes there were little indications that growing pay demands increased the possibility of a wage-price spiral. She warned that the BoE could worsen an anticipated recession if it raised borrowing prices even further. The dollar weakened amid increased risk sentiment. Today's GBP/USD outlook is bullish as the dollar weakens. The USD struggled to gain ground on Monday, stuck at five-month lows as traders ignored the stronger-than-expected US jobs data. Growing expectations of China reopening boosted risk sentiment. -Are you interested in learning more about buying NFT tokens? Check our detailed guide- Swati Dhingra, who sets interest rates for the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.