According to Jinshi, XTB said that if Friday's US non-farm payrolls report is strong, GBP/USD may fall, but any decline may only be temporary. Kathleen Brooks, director of research at XTB, pointed out that economic growth prospects and interest rate differentials still support further gains for the pound, even if GBP/USD will fluctuate in the short term.
She said the market is pricing in more than 100 basis points of rate cuts from the Federal Reserve this year, while the Bank of England is pricing in 43 basis points of rate cuts. If the trend continues, GBP/USD could rise to 1.35 from the current 1.3124.