FundamentalOverviewThe USD rallied across theboard last week after a slate of strong US data. The focus was mainly on Jobless Claims which beat expectations by a bigmargin with Initial Claims falling to the lowest level since July andContinuing Claims improving further. This triggered a hawkish repricing ininterest rates expectations since the Fed started cutting rates solely due toweaker labour market data. This means that if wecontinue to get stronger labour market data, the Fed could start turning morehawkish again and we might not get another cut in October, or more probably inDecember. Therefore, there’s still plenty of room for the US dollar to appreciatein case of strong data as the market’s pricing remains too dovish. The Fedprojected 75 bps of easing by the end of 2026, while the market is stillpricing 104 bps. The greenback erased allthe gains triggered by last week’s data in the meantime as we are likelyexperiencing a pullback after a very strong rally. Other possible reasonsinclude the government shutdown fears and quarter-end flows. On the GBP side, we haven’tgot any meaningful change in the fundamentals in the meantime. The BoE leftinterest rates unchanged at the last meeting but slowed the pace of QT. Theforward guidance was mostly the same with the focus being more on the inflationside now. The UK continues to have a serious inflation problem with high coreCPI, high wages and rising consumer inflation expectations. The market ispricing just 5 bps of easing by year-end and 36 bps by the end of 2026. GBPUSDTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that GBPUSD bounced on the key swing level at 1.3334 with the buyers nowtargeting a rally into the 1.3588 level. That’s where we can expect the sellersto step in with a defined risk above the level to position for a drop back intothe 1.3334 level. In case, we reverse course earlier and the price breaks belowthe 1.3334 level, we can expect the sellers to increase the bearish bets intothe 1.3140 level next.GBPUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we had a downward trendline defining the bearish momentum thatgot breached. The buyers increased the bullish bets into the 1.3588 level as aresult, while the sellers retrenched. There’s not much else we can glean fromthis timeframe, so we need to zoom in to see some more details.GBPUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor support around the 1.3410 level. If the price getsthere, we can expect the buyers to step in with a defined risk below the levelto keep pushing into new highs. The sellers, on the other hand, will look for abreak lower to pile in for a drop back into the 1.3334 level next. The redlines define the average daily range for today.Upcoming CatalystsTomorrow we get the US Job Openings data and the US ConsumerConfidence report. On Wednesday, we have the US ADP and the US ISMManufacturing PMI. On Thursday, we get the latest US Jobless Claims figures. OnFriday, we conclude the week with the US NFP report and the US ISM ServicesPMI. Keep also an eye on Fed speakers. This article was written by Giuseppe Dellamotta at investinglive.com.