The greenback extended overnight reversal move, helping the GBP/USD major to move within striking distance of reclaiming 1.2500 psychological mark.
Currently trading around 1.2490-95 band, the pair has now recovered over 100-pips from yesterday's sub-1.2400 level and has been primarily driven by a follow through greenback retracement. The Fed Chair Janet Yellen's slightly cautious tone, during the semiannual before the House Financial Services Committee, failed to extend upbeat US economic data-led bullish sentiment surrounding the greenback and prompted investors to trim their bullish USD bets. In fact, the key US Dollar Index on Wednesday reversed early up-move to monthly highs and has now broken below 101.00 handle.
With Wednesday's reversal and subsequent recovery on Thursday, markets now seem to have digested yesterday's disappointing UK CPI print and the US Dollar price-dynamics remains an exclusive driver of the pair's movement on Thursday.
In absence of any relevant data from the UK, market participants will focus on the US economic docket featuring the release of usual weekly jobless claims, building permits, housing starts and Philly Fed manufacturing index, due later during NA session.
Technical levels to watch
Momentum above 1.2500 immediate resistance is likely to confront resistance near 1.2525-30 horizontal zone, which if cleared is likely to accelerate the up-move back towards 1.2575-80 resistance ahead of 1.2600 round figure mark.
On the downside, 1.2465 level now becomes immediate support to defend below which the pair could drop 50-day SMA support near 1.2420 region before eventually breaking back below 1.2400 handle and aim towards testing Feb. monthly lows support near 1.2350-45 region.
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
Gold: Record-setting rally remains intact ahead of US PCE data
Gold price refreshes a fresh all-time peak, closing on the $3,100 mark. The global risk sentiment continues to be undermined by worries over Donald Trump's auto tariffs announced earlier in the week, with traders rushing for safety in Gold price. US PCE inflation data awaited.
EUR/USD trades with mild losses below 1.0800, awaits US PCE
EUR/USD is on the back foot below 1.0800 early Friday, struggling to capitalize on the previous day's goodish bounce. Trump's tariff jitters keep investors on the edge, leaving the pair gyrating in a range ahead of the key US PCE inflation data.
GBP/USD holds steady near 1.2950 after UK data
GBP/USD stays quiet and fluctuates near 1.2950 in the European session on Friday. Uncertainty over US President Trump's tariff plans weigh on risk mood and caps the pair's upside, even after February Retail Sales data from the UK came in better than expected.
US core PCE inflation expected to remain sticky, reinforcing Federal Reserve’s cautious stance on rate cuts
The United States Bureau of Economic Analysis is set to release the PCE Price Index data for February on Friday at 12:30 GMT. The core Personal Consumption Expenditures Price Index is expected to rise 0.3% MoM and 2.7% YoY in February.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.