GBP/USD holds below 1.2550 amid firmer US Dollar

GBP/USD trades in negative territory near 1.2535 on a stronger USD.
US ISM Services PMI came in at 53.4 in January vs. 50.5 prior.
BoE’s Pill said rates will come down this year, but only with progress on inflation.

Lallalit Srijandorn FXStreet

The GBP/USD pair drops to the multi-week low of 1.2518 and rebounds to 1.2535 during the early Asian session on Tuesday. The expectations of an early Federal Reserve (Fed) interest rate cut fade, and this lifts the US Dollar (USD) across the board. Meanwhile, the US Dollar Index (DXY) holds above 104.40 after retracing from a yearly high of 104.60.

The Institute for Supply Management (ISM) reported on Monday that the US ISM Services PMI climbed to 53.4 in January from 50.5 in December. The Services PMI data, along with the labor market data, suggested that the fourth quarter's economic growth momentum carried over into the new year and reduced the possibility of an interest rate cut in March.

The Bank of England (BoE) Chief Economist Huw Pill stated on Monday that interest rates could drop this year as a reward to the economy for bringing inflation down. Pill added that monetary policy is now on a different path than it was over the course of last year, and rates will only decline as long as progress continues with inflation.

Later on Monday, the UK BRC Retail Sales and S&P Global/CIPS Construction PMIs for January will be due. In the absence of top-tier economic data released from the UK and US, risk sentiment will likely play a pivotal role for GBP/USD.

GBP/USD

Overview
Today last price	1.2535
Today Daily Change	-0.0102
Today Daily Change %	-0.81
Today daily open	1.2637

Trends
Daily SMA20	1.2706
Daily SMA50	1.2682
Daily SMA100	1.2473
Daily SMA200	1.2563

Levels
Previous Daily High	1.2773
Previous Daily Low	1.2614
Previous Weekly High	1.2773
Previous Weekly Low	1.2614
Previous Monthly High	1.2786
Previous Monthly Low	1.2597
Daily Fibonacci 38.2%	1.2675
Daily Fibonacci 61.8%	1.2712
Daily Pivot Point S1	1.2576
Daily Pivot Point S2	1.2516
Daily Pivot Point S3	1.2418
Daily Pivot Point R1	1.2735
Daily Pivot Point R2	1.2833
Daily Pivot Point R3	1.2894

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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