GBP/USD refreshes session tops near 1.3480 region, lacks follow-through

The GBP/USD pair edged higher through the early North American session and climbed to fresh daily tops, around the 1.3475-80 region post-US macro data.

The US dollar now seems to have entered a bullish consolidation phase and was seen oscillating in a range just below the highest level since September 2020 touched earlier this Thursday. The prevalent risk-on mood, along with a softer tone around the US Treasury bond yields held the USD bulls from placing fresh bets.

This was seen as a key factor that extended some support to the GBP/USD pair, which got a minor lift following an upward revision of the UK GDP print for the second quarter of 2021. The Office for National Statistics reported that the UK expanded by 5.5% during the April-June period as against the first estimate of a 4.8% increase.

On the other hand, the US GDP growth was also revised marginally higher to a 6.7% annualized pace from the preliminary estimate for a 6.6% rise. This, however, was overshadowed by an unexpected rise in the Weekly Initial Jobless Claims. In fact, the number of Americans filing for unemployment-related benefits jumped from 351K to 362K last week.

That said, expectations that the Fed would begin rolling back its massive pandemic-era stimulus as soon as November and raise interest rates in 2022 helped limit any deeper USD losses. Apart from this, the ongoing fuel crisis in Britain might further collaborate to keep a lid on any further gains for the GBP/USD pair, at least for the time being.

Thursday's US economic docket also features the release of Chicago PMI, though the focus will be on Fed Chair Jerome Powell's testimony before the Committee on Financial Services. Apart from this, the US bond yields and the broader market risk sentiment will influence the USD price dynamics and provide some impetus to the GBP/USD pair.

Technical levels to watch