GBP/USD climbs on risk appetite improvement, awaiting UK/US data

GBP/USD rises 0.13% on upbeat market mood, steady USD.
Despite printing poor UK retail sales, a strong UK inflation report keeps GBP/USD stable, with Wall Street's performance as a key driver.
The US Dollar Index (DXY) up 0.07%, limits the Pound's advance, though it remains resilient.
San Francisco Fed President Daly indicates current policy is appropriate and rate cuts wouldn't impact inflation progress.

Christian Borjon Valencia FXStreet

The Pound Sterling (GBP) climbed late in the North American session against the US Dollar (USD) up by 0.13%, sponsored by an improvement in risk appetite as shown by US stocks registering gains between 0.25% and 0.36%.

An upbeat sentiment underpins the GBP/USD amid firm US Dollar

Wall Street is trading with gains as a tailwind for risk-perceived currencies like the Pound, which, despite weakening last Friday on a bad retail sales report, a hot inflation report on January 17, would likely keep the GBP/USD underpinned amid the lack of catalysts in the US economic docket. Meanwhile, an uptick in the US Dollar Index (DXY) of 0.07% up at 103.31, capped the major’s advance, after hitting a daily high of 1.2732.

Last Friday, the San Francisco Fed President Mary Daly said that policy is appropriate and that if the Fed lowered rates, they would not impact the progress in inflation achieving its 2% target. Ahead in the week. In the meantime, last week’s economic data supports a soft landing scenario, as strong retail sales, optimism among American households, and a strong labor market outshined mixed US housing figures.

This week UK’s economic docket will feature S&P Global Flash PMIs on Wednesday, alongside the UK’s Business Confidence indicator. On the US front, the calendar will feature PMIs, Q4’s 2023 Gross Domestic Product, housing data and inflation figures.

GBP/USD Price Analysis: Technical outlook

GBP/USD

Overview
Today last price	1.2713
Today Daily Change	0.0011
Today Daily Change %	0.09
Today daily open	1.2702

Trends
Daily SMA20	1.2713
Daily SMA50	1.2637
Daily SMA100	1.2453
Daily SMA200	1.2551

Levels
Previous Daily High	1.2715
Previous Daily Low	1.2662
Previous Weekly High	1.2766
Previous Weekly Low	1.2597
Previous Monthly High	1.2828
Previous Monthly Low	1.2501
Daily Fibonacci 38.2%	1.2694
Daily Fibonacci 61.8%	1.2682
Daily Pivot Point S1	1.2671
Daily Pivot Point S2	1.264
Daily Pivot Point S3	1.2618
Daily Pivot Point R1	1.2724
Daily Pivot Point R2	1.2746
Daily Pivot Point R3	1.2777

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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