GBP/USD outlook: Bears take a breather after sharp three-day fall

The EUR/USD pair posts modest losses near 1.1690 during the early European trading hours on Thursday. However, the US Federal Reserve's dovish rate cut on Wednesday could weigh on the US Dollar against the Euro. Traders await the release of the US weekly Initial Jobless Claims report, which is due later on Thursday. 

The GBP/USD pair trades in negative territory near 1.3365 during the early European trading hours on Thursday, pressured by the rebound in the US Dollar. Nonetheless, the potential downside might be limited after the US Federal Reserve delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report, which will be published later on Thursday. 

Gold retreats following a modest Asian session uptick to the $4,247 area, or a fresh weekly high, and for now, seems to have snapped a two-day winning streak. A generally positive risk tone, along with a modest US Dollar bounce from its lowest level since October 24, turns out to be a key factor undermining demand for the safe-haven precious metal. 

Solana price is trading below $130 on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.

The Federal Open Market Committee’s (FOMC) latest dot plot, released on Wednesday, indicates that interest rates will average 3.4% by the end of 2026, in line with the September projection.

Hyperliquid is trading above $28.00 at the time of writing on Wednesday, after rebounding from support at $27.50. The broader cryptocurrency market is characterised by widespread intraday losses ahead of the Fed monetary policy decision.