GBP/USD eyes 1.2050 as risk-off impulse cools down further ahead of US/UK PMIs

GBP/USD is marching towards 1.2050 as the risk-off market mood has lost traction.
The FOMC minutes will provide detailed guidance on the interest rate policy.
Preliminary US/UK PMIs are expected to scale down due to higher interest rates.

Sagar Dua FXStreet

The GBP/USD pair has printed a fresh day high at 1.2045 in the early London session. The Cable is looking to extend its gains to 1.2050 as the risk-off impulse has faded away despite no negative development on the US-China tensions and three missiles launched by North Korea near Japan’s region.

The US Dollar Index (DXY) has refreshed its day low at 103.52 as investors ignored the fears of persistent inflation and a robust labor market in the United States. S&P500 futures have recovered their entire losses and are looking to shift into a positive trajectory amid the risk appetite theme.

No doubt, the declining trend in the US inflation is still intact as the figures have dropped from their prior numbers. However, the releases of the Consumer Price Index (CPI) and Producer Price Index (PPI) above its estimates have cleared that the battle against inflation is far from over yet. And, the release of the upbeat monthly Retail Sales indicates that consumer spending has recovered vigorously.

Going forward, the release of the Federal Open Market Committee (FOMC) minutes will provide detailed guidance on the interest rate policy ahead.

But before that, the release of the US S&P PMI data will be keenly watched. The preliminary Manufacturing PMI (Feb) is seen lower at 46.8 vs. the prior release of 46.9. And the Services PMI is seen at 46.6 against the former release of 46.8.

Meanwhile, the Pound Sterling remained in action after the United Kingdom's Telegraph reported that UK Prime Minister (PM) Rishi Sunak has been forced to “pause” his Northern Ireland protocol deal amid a backlash from senior Tories and unionists.

Going forward, Tuesday’s S&P PMI (Feb) data will remain in the spotlight. The preliminary Manufacturing PMI is seen lower at 46.8 while the Services PMI is expected to decline to 48.3.

GBP/USD

Overview
Today last price	1.204
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.2044

Trends
Daily SMA20	1.2197
Daily SMA50	1.2174
Daily SMA100	1.1903
Daily SMA200	1.194

Levels
Previous Daily High	1.2049
Previous Daily Low	1.1915
Previous Weekly High	1.227
Previous Weekly Low	1.1915
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.1998
Daily Fibonacci 61.8%	1.1966
Daily Pivot Point S1	1.1956
Daily Pivot Point S2	1.1869
Daily Pivot Point S3	1.1822
Daily Pivot Point R1	1.209
Daily Pivot Point R2	1.2137
Daily Pivot Point R3	1.2224

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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