Ella 
In the Asian market on Monday, GBP/USD continued its gains for the second consecutive day, rising to around 1.2230. GBP/USD may find upside support after the UK’s preliminary gross domestic product (GDP) data released on Friday was better than expected, and coupled with the weakness of the US dollar.
UK GDP fell to 0.0% in the third quarter, compared with market expectations of -0.1%. UK GDP was flat at an annual rate of 0.6%, below expectations of 0.5%. These data are likely to improve market sentiment towards Pound Sterling (GBP).
Despite data showing that the UK appears to be avoiding a recession in 2023, UK inflation is still teetering on the edge of stagflation. Inflation remains high and unemployment is rising. The UK is in a difficult time for its economic balance.
In his speech last Thursday, Federal Reserve Chairman Powell unexpectedly took a more hawkish stance than expected. Federal Reserve Chairman Jerome Powell expressed concern that current policies may not be enough to control inflation to the 2.0% target that the Fed aspires to achieve.
However, last Friday the US dollar experienced a fresh reversal. The initial value of the Michigan consumer confidence index in the United States became the focus, showing that the consumer confidence index fell to 60.4 in November from the previous value of 63.8.
GBP/USD traders are preparing for a crucial week, focusing on Tuesday’s UK employment and inflation data. Meanwhile, in the United States, all money market focus is likely to be on Tuesday’s release of the U.S. Consumer Price Index.
