• GBP/USD is struggling to overstep 1.2300 as investors await the US Durable Goods Orders.
  • Investors should brace for a vulnerable performance from the US economic data.
  • The BOE may dictate a jumbo rate hike in July considering its inflation rate is above 9%.

The GBP/USD pair is juggling in a narrow range of 1.2259-1.2297 in the early European session as investors are awaiting the release of the US Durable Goods Orders. The US economic data is expected to release at 0.1% against the prior print of 0.5%.  

An underperformance is expected from the economic data, thanks to soaring price pressures, which have forced the Federal Reserve (Fed) to elevate its interest rates vigorously and eventually squeeze liquidity from the market. It is worth noting that the PMI figures reported by the IHS Markit last week were extremely lower than the forecasts and the prior prints. Now, lower estimates for the Durable Goods Orders are indicating that the economy is facing a slump in the overall demand structure.

This week, the US agencies will also report the Gross Domestic Product (GDP) numbers, which are due on Wednesday. The GDP numbers are expected to remain steady at -1.5% on a quarterly basis. While the GDP Price Index may slip to 7.2% from the prior print of 8.1%.

On the pound front, bulls are holding themselves despite a minor advancement in the Consumer Price index (CPI) at 9.1% on an annual basis. This has raised the odds of a 50 basis point (bps) rate hike by the Bank of England (BOE) in July. Earlier, the BOE elevated its interest rates by 25 bps only as the growth prospects were not lucrative to support a healthy rate hike announcement.

GBP/USD

Overview
Today last price 1.2276
Today Daily Change 0.0007
Today Daily Change % 0.06
Today daily open 1.2269
 
Trends
Daily SMA20 1.2375
Daily SMA50 1.2482
Daily SMA100 1.2872
Daily SMA200 1.3191
 
Levels
Previous Daily High 1.232
Previous Daily Low 1.2241
Previous Weekly High 1.2324
Previous Weekly Low 1.2161
Previous Monthly High 1.2667
Previous Monthly Low 1.2155
Daily Fibonacci 38.2% 1.229
Daily Fibonacci 61.8% 1.2271
Daily Pivot Point S1 1.2233
Daily Pivot Point S2 1.2197
Daily Pivot Point S3 1.2154
Daily Pivot Point R1 1.2313
Daily Pivot Point R2 1.2357
Daily Pivot Point R3 1.2393

 

 

 

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