GBP/USD rebounds on subdued US Dollar, inches higher to near 1.2600

GBP/USD gains ground as the Greenback weakens on speculations of a Fed rate cut in June.
The higher US Treasury yields could have provided support for the US Dollar.
Fitch Ratings revised the UK's sovereign credit outlook to stable from negative last Friday, affirming its sovereign credit rating at AA-.

Akhtar Faruqui FXStreet

GBP/USD snaps a two-day losing streak, retracing recent losses and trading near 1.2600 during the early European session on Monday. The decline in the US Dollar (USD) appears to be the catalyst underpinning the GBP/USD pair.

The dovish sentiment surrounding the Federal Reserve's stance on the trajectory of interest rates, with market sentiment leaning towards the Fed initiating interest rate cuts starting in June, is weakening the US Dollar.

The US Dollar Index (DXY) declines to near 104.30 as the 2-year and 10-year yields on US Treasury bonds hold at 4.60% and 4.21%, respectively, by the press time. The US Dollar (USD) fails to cheer the uptick in US Treasury yields.

Fitch Ratings revised the United Kingdom's sovereign credit outlook to stable from negative last Friday, affirming its sovereign credit rating at AA-. The revision came after the country's economy rebounded to growth in January from a shallow recession in the second half of 2023, boosted by a resurgence in retail sales and housing.

UK Retail Sales came in better than expectations, remaining flat in February. This figure was above the market consensus of a 0.3% decline and suggested a positive sign for the economy. Market participants will likely monitor the release of Gross Domestic Product (GDP) data for the fourth quarter of 2023 from the United Kingdom (UK) and the United States (US) on Thursday.

GBP/USD

Overview
Today last price	1.2603
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.2602

Trends
Daily SMA20	1.2725
Daily SMA50	1.2682
Daily SMA100	1.2639
Daily SMA200	1.2593

Levels
Previous Daily High	1.2675
Previous Daily Low	1.2575
Previous Weekly High	1.2804
Previous Weekly Low	1.2575
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2614
Daily Fibonacci 61.8%	1.2637
Daily Pivot Point S1	1.256
Daily Pivot Point S2	1.2518
Daily Pivot Point S3	1.246
Daily Pivot Point R1	1.2659
Daily Pivot Point R2	1.2717
Daily Pivot Point R3	1.2759

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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