- The GBP/USD caught some lift on Thursday, rising back to the 1.2200 handle.
- Friday sees UK GDP figures amidst a slew of low-tier data.
- The Pound Sterling is broadly expected to continue weakening looking out long-term.
The GBP/USD managed to eke out a minor recovery on Friday, owing more to a step back in the broad-market US Dollar Index (DXY) than any intrinsic strength to be found in the Pound Sterling (GBP).
Market analysts broadly expect the GBP to continue to weaken moving forward, and a continued backslide to the 1.2000 major handle is all but a foregone conclusion for many instutitions.
The upcoming Friday trading session will kick things off for the GBP/USD with UK Gross Domestic Product figures due at 06:00 GMT. The UK GDP for the second quarter is forecast to hold steady at 0.2%, and a miss for headline economic growth in the British economy is all set to see the Pound lose what little gains it's recovered for Thursday.
Friday also brings high-impact data for the USD, most notably the Personal Consumption Expenditure (PCE) Price Index at 12:30 GMT. The PCE numbers are expected to hold steady at 0.2% for the month of August, with the annualized figure for the same period seen ticking down from 4.2% to 3.9%.
US figures hit a middling note on Thursday, with US Initial Jobless Claims clocking in at 204K versus the previous 202K; US annualized GDP for the second quarter came in exactly at expectations at 2.1%.
The big miss for Thursday was US Pending Home Sales, which surprised to the downside by not-insignificant -7.1%, far below the forecast -0.8% and dropping away from the previous 0.9%.
Read More:
GBP/USD remains vulnerable to the 1.20/1.21 area – ING
The Pound and Euro should weaken substantially through early 2024 – Wells Fargo
GBP/USD needs to surpass 1.2350 to show more meaningful technical strength – Scotiabank
GBP/USD technical outlook
The GBP/USD rose half a percent on Thursday, lifting to a session high of 1.2220 after pinging into six-month lows at 1.2110 the previous day.
Hourly candles have the pair rising into technical support coming down from the bearish 200-hour Simple Moving Average (SMA) near 1.2260.
On daily candlesticks the GBP/USD is firmly bearish and potentially primed for a minor relief rally. Price action will be capped off by the 200-day SMA above 1.2400, and the 34-day Exponential Moving Average (EMA) is racing to make a bearish cross of the longer moving average.
the GBP/USD is over 7% off its last meaningful swing high in July at 1.3140.
GBP/USD hourly chart
GBP/USD daily chart
GBP/USD technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends slide below 1.0700 on stronger USD, EU political angst
EUR/USD stays under bearish pressure and trades at its lowest level since early May below 1.0700. Unabated US Dollar demand amid risk aversion and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.
GBP/USD slumps to multi-week lows below 1.2700
GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.
Gold clings to recovery gains at around $2,330
Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.
Monero price poised for a downward correction
Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.
Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap
It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.