GBP/USD holds above the 1.2700 mark ahead of the US GDP data


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  • GBP/USD strengthens to 1.2715 amid the USD weakness.
  • BoE’s Haskel said the inflationary pressures remain in the UK labour market and there was no way to cut rates any time soon.
  • US CB Consumer Confidence climbed to 102.00 in November, vs. a downward revision to 99.1 prior.
  • Traders will closely watch the US growth numbers, due later on Wednesday.

The GBP/USD pair gains momentum above 1.2700 during the early European session on Wednesday. The uptick of the pair is supported by the weaker US Dollar (USD) and lower US Treasury bond yields. The pair currently trades near 1.2715, up 0.19% on the day.

The Bank of England (BoE) governor, Jonathan Haskel said inflationary pressures remain in the UK labor market and there was no way to cut interest rates from their 15-year high any time soon. While BoE Deputy Governor Dave Ramsden said monetary policy would need to be restrictive for some time to bring inflation down. On Monday, BoE Governor Andrew Bailey said getting inflation down to the central bank's 2% target will be hard work as most of its recent decline was caused by the unwinding of the surge in energy prices last year. Nonetheless, the BoE's latest forecasts show it estimates inflation to return to 2% at the end of 2025.

Federal Reserve (Fed) Governor Christopher Waller said Tuesday that inflation currently remains too high, but he stated that progress has been made and the Fed won’t need to hike rates further from here. That being said, the rising odds that the Fed is done with rate hiking weigh on the USD and act as a tailwind for the GBP/USD pair.

Apart from this, data on Tuesday showed that US CB Consumer Confidence climbed to 102.00 in November, compared to a downward revision to 99.1 prior. The Richmond Fed Manufacturing declined to 5.0 from 3.0 rise in the previous reading. The S&P/Case-Shiller Home Price Index rose 3.9% YoY in September, below the estimation of 4.0%.

Market participants will keep an eye on the US Gross Domestic Product Annualized for the third quarter (Q3), due later on Wednesday. The growth rate is expected to expand by 5.0%. Also, BoE's Governor Bailey is set to speak later in the day. Traders will take cues from these data and find trading opportunities around the GBP/USD pair.

 

GBP/USD

Overview
Today last price 1.2718
Today Daily Change 0.0023
Today Daily Change % 0.18
Today daily open 1.2695
 
Trends
Daily SMA20 1.2408
Daily SMA50 1.2276
Daily SMA100 1.2494
Daily SMA200 1.2461
 
Levels
Previous Daily High 1.2715
Previous Daily Low 1.2607
Previous Weekly High 1.2616
Previous Weekly Low 1.2446
Previous Monthly High 1.2337
Previous Monthly Low 1.2037
Daily Fibonacci 38.2% 1.2674
Daily Fibonacci 61.8% 1.2648
Daily Pivot Point S1 1.2629
Daily Pivot Point S2 1.2564
Daily Pivot Point S3 1.2521
Daily Pivot Point R1 1.2738
Daily Pivot Point R2 1.2781
Daily Pivot Point R3 1.2846

 

 

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