|

GBP/USD pare losses after US GDP

The GBP/USD pair pared some of its early losses to the vicinity of 1.2400 handle, albeit maintained its bearish bias for the third consecutive session, following the release of prelim US GDP growth figures.

Currently trading around 1.2430-35 region, the pair gained some traction during early NA session after the revised US economic growth for the fourth-quarter of 2016 matched initial estimates and came-in at an annualized rate of 1.9%. The reading was lower-than 2.1% growth expected and added on to slightly bearish sentiment surrounding the greenback. In fact, the key US Dollar Index has now dipped below the 101.00 handle and provided some temporary respite for the major. 

The pair, however, remained within familiar trading range and has held above the 1.2385-80 strong horizontal support as market participants wait to hear the US President Donald Trump’s first address to a joint session of Congress, later during NY session, for some clarity over his proposed pro-growth economic policies. 

In the meantime, the release of Chicago PMI and CB's Consumer Confidence Index might also provide some opportunities for short-term traders.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "From a technical point of view, the GBP/USD pair has made little progress, now trading below its 20 SMA in the 4 hours chart, and with technical indicators lacking directional strength right below their mid-lines. Also, the price is stuck around the 38.2% retracement of its latest bullish run. US data can give the greenback some direction, but it's possible the market will wait for Trump to take some stronger positions. Anyway, the immediate resistance is 1.2380, where the pair bottomed multiple times this month, followed by 1.2345, February low and the 50% retracement of the same rally. Below this last, the bearish momentum will likely accelerate"

"To the upside, 1.2480 is the immediate resistance, followed by the 1.2520/40 region, where selling interest is expected to contain rallies."

1 Week
Avg Forecast 1.2509
100.0%93.0%57.0%055606570758085909510000.10.20.30.40.50.60.70.80.910
  • 57% Bullish
  • 36% Bearish
  • 7% Sideways
Bias Bullish
1 Month
Avg Forecast 1.2279
100.0%90.0%16.0%010203040506070809010000.10.20.30.40.50.60.70.80.910
  • 16% Bullish
  • 74% Bearish
  • 11% Sideways
Bias Bearish
1 Quarter
Avg Forecast 1.2174
100.0%79.0%4.0%0010203040506070809010000.10.20.30.40.50.60.70.80.910
  • 4% Bullish
  • 75% Bearish
  • 21% Sideways
Bias Bearish

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).