GBP/USD hangs near daily low, around mid-1.2400s amid fresh USD buying

GBP/USD meets with some supply on Thursday amid the emergence of some USD buying.
A further rise in the US bond yields turns out to be a key factor lending support to the buck.
The USD maintains its bid tone and moves little following the Advance US Q1 GDP report.

Haresh Menghani FXStreet

The GBP/USD pair attracts some sellers near the 1.2500 psychological mark during the early North American session and drops to a fresh daily low following the release of the US macro data. Spot prices, however, manage to rebound a few pips in the last hour and now trade with a mild negative bias, around the mid-1.2400s.

The US Bureau of Economic Analysis reported this Thursday that the economic growth decelerated from 2.6% annualized pace to 1.1% during the January-March period, missing estimates for a reading of 2.0%. Further details of the report revealed that the GDP Price Index edged higher to 4% in the same period from 3.9%, compared to estimates for a reading of 3.8%. On a quarterly basis, the Personal Consumption Expenditures (PCE) Prices rose to 4.2% from 3.7%, indicating an unexpected pickup in price pressures.

Furthermore, data published by the US Department of Labor (DOL) showed that Initial Jobless claims fell to 230K in the week ended April 22 as compared to the 246K previous and the 248K anticipated. This also marks the lowest level in three weeks. Nevertheless, the upbeat macro data reaffirms bets for another 25 bps lift-off at the next FOMC meeting in May and remains supportive of a further rise in the US Treasury bond yields, which underpins the US Dollar (USD) and exerts some pressure on the GBP/USD pair.

The downside, however, remains cushioned, at least for the time being, amid growing acceptance that the Bank of England (BoE) will also hike interest rates by 25 bps in May. This, in turn, warrants some caution before placing aggressive bearish bets around the GBP/USD pair and positioning for any meaningful downside. Traders also seem reluctant and now look forward to Friday's release of the US Core PCE Price Index, the Fed's preferred inflation gauge, which will play a key role in influencing the near-term USD price dynamics.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2444
Today Daily Change	-0.0026
Today Daily Change %	-0.21
Today daily open	1.247

Trends
Daily SMA20	1.2434
Daily SMA50	1.223
Daily SMA100	1.2206
Daily SMA200	1.1934

Levels
Previous Daily High	1.2516
Previous Daily Low	1.2403
Previous Weekly High	1.2474
Previous Weekly Low	1.2354
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2472
Daily Fibonacci 61.8%	1.2446
Daily Pivot Point S1	1.241
Daily Pivot Point S2	1.235
Daily Pivot Point S3	1.2297
Daily Pivot Point R1	1.2522
Daily Pivot Point R2	1.2575
Daily Pivot Point R3	1.2635

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold eases below$4,300 in the Fed's aftermath

Gold erased intraday gains but eases from its intraday peak following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide below $4,300.

XRP Price Forecast: XRP clings to 50-day EMA support after CLARITY Act setback

Ripple (XRP) trades lower around $1.28 on Wednesday, as investors broadly assess the impact of the failed United States (US) Senate vote on the CLARITY Act and the upcoming Federal Reserve (Fed) monetary decision. The remittance token has trimmed early-week gains that tagged highs around $1.50 on Monday and now holds key moving-average support.

WTI pulls back below $100 as Saudi Arabia steps up efforts to restore Oil flows

West Texas Intermediate (WTI) Oil falls on Wednesday as Saudi Arabia steps up efforts to restore flows through its East-West pipeline, which was damaged by a drone attack last week. The prospect of a partial restart eases some supply concerns in a market already strained by disruptions across the Middle East.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.