KEY POINTS:GBPUSD keeps the bullish trend going as it bounces from a major trendlineThe BoE set to cut the Bank Rate by 25 bps on ThursdayThe Fed delivered on expectations, but Powell sounded more dovishUS NFP and CPI in focus FUNDAMENTALOVERVIEWUSD:The USD has been weakeningacross the board since last week’s FOMC decision. The Fed delivered onexpectations cutting by 25 bps and signalling a higher bar for further ratecuts, but Fed Chair Powell’s press conference was seen as fairly dovish. In fact, instead ofsounding as neutral as possible and stressing data-dependency, he downplayedthe inflation risk and emphasized the labour market weakness, suggesting thatthere’s more tolerance for higher inflation than for weaker labour market. The focus this week will beon the US NFP and CPI reports that will wrap up the last real trading week ofthe year before market participants prepare for the holidays. Right now, themarket is pricing 57 bps of easing by the end of 2026. If we get strong US data,especially on the labour market side, we will likely see a hawkish repricingwhich would give the US dollar a boost. On the other hand, weak data shouldweigh on the greenback further as the market will bring rate cut bets forward. GBP:On the GBP side, the recentdata validated the expectations for a rate cut at the upcoming BoE meeting. Wegot a weak UK GDP last week, and before that, a soft UK labour market reportand benign CPI data. The market is pricing a 91%chance of a rate cut on Thursday, so the focus will be mainly on their forwardguidance. Traders are also seeing 64 bps of total easing by the end of 2026,and that will be shaped by the economic data in the next months. GBPUSD TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that we have a major upward trendline defining the bullish momentum. Thebuyers continue to lean on the trendline with a defined risk below it to keep pushinginto new highs. The sellers, on the other hand, will want to see the pricebreaking below the trendline to pile in for a drop into the 1.3200 handle next.GBPUSD TECHNICAL ANALYSIS –4 HOUR TIMEFRAMEOn the 4 hour chart, we cansee more clearly how the major trendline has been acting as a reliable supportfor the buyers. The natural target should be the key daily swing level at 1.3470.If the price gets there, we can expect the sellers to step in with a definedrisk above the level to position for a drop back into the trendline targeting abreakout. The buyers, on the other hand, will look for a break higher toincrease the bullish bets into new highs.GBPUSD TECHNICAL ANALYSIS –1 HOUR TIMEFRAMEOn the 1 hour chart, we cansee that we have a key swing level around the 1.34 handle. That’s where we canexpect the sellers to step in with a defined risk above the level to positionfor a drop back into the trendline targeting a breakout. The buyers, on theother hand, will look for a break higher to extend the rally into the 1.3470level next. The red lines define the average daily range for today.UPCOMING CATALYSTSTomorrow we have the UK employment report and the US NFP. On Wednesday, wehave the UK CPI report. On Thursday, we have the BoE rate decision and the USCPI data. On Friday, we conclude the week with the UK Retail Sales data. This article was written by Giuseppe Dellamotta at investinglive.com.