GBP/USD Analysis: Struggles to find acceptance above 1.3000, US GDP eyed for fresh impetus

• Broad-based USD weakness assisted GBP/USD to continue gaining traction on Wednesday.
• Dovish Fed, uncertainty over the next round of the US fiscal stimulus weighed on the USD.
• Profit-taking kicks in on Thursday amid a modest USD bounce, ahead of the US GDP report.

The GBP/USD pair prolonged its recent strong bullish momentum and continued scaling higher on Wednesday amid the emergence of some fresh US dollar selling. The pair moved back above the key 1.30 psychological mark during the US session after the Fed delivered a more dovish message. As was widely expected, the US central bank decided to leave the Fed funds target rate unchanged at 0-0.25%. The Fed also pledged to keep rates near zero until it is confident that the economy has weathered the recent events and is on track to achieve its maximum employment and price stability goals.

The accompanying policy statement indicated that members tied the pace of recovery on the developments surrounding the coronavirus pandemic. In the post-meeting virtual press conference, the Fed Chair Jerome Powell that there are signs that the continuous increase in COVID-19 cases is weighing on the economic activity and reiterated to use a full range of tools to support the economy. The dovish outlook comes amid the impasse over the next round of US fiscal stimulus measures, which continued weighing on the greenback and remained supportive of the bid tone surrounding the major.

As investors looked past the FOMC policy update, the USD staged a modest bounce from over two-year lows and exerted some pressure on the pair during the Asian session on Thursday. In the absence of any major market-moving economic releases from the UK, the USD price dynamics will play a key role in influencing the pair's momentum. Meanwhile, the US economic docket highlights the release of the Advance GDP report, which is expected to show that the economy collapsed by a record 34.1% during the second quarter of 2020. The data will produce some meaningful trading opportunities later during the early North American session.

Short-term technical outlook

From a technical perspective, the upward trajectory stalled near a resistance marked by the top end of a near three-month-old ascending trend-channel. The mentioned barrier is pegged near the 1.3025 region, which should now act as a key pivotal point for short-term traders. A convincing breakthrough will be seen as a fresh trigger for bulls and set the stage for a move beyond the 1.3065 intermediate hurdle, towards reclaiming the 1.3100 round-figure mark.

On the flip side, any meaningful pullback now seems to find immediate support near the 1.2900 mark. Some follow-through weakness might prompt some technical selling, though the corrective slide might still be seen as a buying opportunity. This, in turn, might help limit the downfall near the June swing high resistance breakpoint, around the 1.2815-10 region.