GBP/USD holds above 1.2800 amid the USD weakness, focus on US Jobless Claims

GBP/USD attracts some buyers above 1.2800 amid the USD softness.
Markets are now pricing in over 88% of a rate cut from the Fed starting in March 2024.
The Bank of England (BoE) has insisted on keeping borrowing costs at their 5.25% level for some time.
Investors will focus on the US Initial Jobless Claims, Trade Balance, and November Pending Home Sales on Thursday.

Lallalit Srijandorn FXStreet

The GBP/USD pair extends its upside above the 1.2800 mark during the Asian trading hours on Thursday. The decline in inflationary pressure in the US economy and dovish comments from the Federal Reserve (Fed) have dragged the US Dollar (USD) lower and lent some support to GBP/USD. At press time, the major pair is trading at 1.2810, up 0.09% on the day.

The Greenback remains under pressure as investors anticipate that the Federal Reserve (Fed) could soon cut interest rates. Markets are now pricing in over 88% of a rate cut starting in March 2024, according to the CME Fedwatch tool, with more than 150 basis points (bps) of cuts priced in for next year.

On the other hand, the Bank of England (BoE) indicated that the rate cuts are not yet close in the UK. The BoE maintained interest rates for the third successive meeting and insisted on keeping borrowing costs at their 5.25% level for some time. The central bank policymakers said earlier that it’s premature to talk about cutting rates. However, money markets expected the interest rate cuts next year, with the first cut coming in May.

Amidst the holiday season's thin trading, the risk sentiment is likely to continue influencing GBP/USD movements until the New Year. Later on Thursday, the US Initial weekly Jobless Claims, Trade Balance, and November Pending Home Sales will be released. The UK Nationwide Housing Prices and the US Chicago Purchasing Managers' Index will be due on Friday.

GBP/USD

Overview
Today last price	1.2808
Today Daily Change	0.0008
Today Daily Change %	0.06
Today daily open	1.28

Trends
Daily SMA20	1.2653
Daily SMA50	1.2467
Daily SMA100	1.2448
Daily SMA200	1.2524

Levels
Previous Daily High	1.2803
Previous Daily Low	1.2699
Previous Weekly High	1.2762
Previous Weekly Low	1.2612
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2763
Daily Fibonacci 61.8%	1.2738
Daily Pivot Point S1	1.2731
Daily Pivot Point S2	1.2663
Daily Pivot Point S3	1.2627
Daily Pivot Point R1	1.2835
Daily Pivot Point R2	1.2871
Daily Pivot Point R3	1.294

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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