• GBP/USD witnessed a subdued/range-bound price action on Thursday.
  • Bulls largely shrugged off and seemed unimpressed by UK macro data.
  • A softer tone surrounding the USD extended some support to the pair.

The GBP/USD pair extended its sideways consolidative move around the 1.3870-65 region and had a rather muted reaction to the UK macro data dump.

The pair was seen oscillating in a range through the first half of the trading action on Thursday and so far, has failed to capitalize on the overnight solid bounce from the 1.3800 mark. That said, a subdued US dollar price action continued lending some support to the GBP/USD pair.

The US CPI report released on Wednesday showed signs of moderation in inflationary pressure and eased fears about an early withdrawal of the stimulus by the Fed. This was evident from a follow-through pullback in the US Treasury bond yields, which acted as a headwind for the greenback.

The GBP/USD pair, however, struggled to gain any meaningful traction and move little following the release of better-than-expected UK monthly GDP print. In fact, the economy expanded by 1% MoM in June against 0.8% anticipated and the quarterly growth rate stood at 4.8%, as expected.

This was accompanied by stronger Manufacturing and Industrial Production data for June. The positive readings were offset by an unexpected jump in the UK trade deficit, to £11.988 billion from £9.601 billion. This was seen as the only factor that capped gains for the GBP/USD pair.

Market participants now look forward to the US economic docket, featuring the release of the Producer Price Index (PPI) and the usual Initial Weekly Jobless Claims. This, along with the US bond yields, might influence the USD and provide some trading impetus to the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.387
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.3865
 
Trends
Daily SMA20 1.3832
Daily SMA50 1.3901
Daily SMA100 1.3926
Daily SMA200 1.3771
 
Levels
Previous Daily High 1.3888
Previous Daily Low 1.3803
Previous Weekly High 1.3958
Previous Weekly Low 1.3861
Previous Monthly High 1.3984
Previous Monthly Low 1.3572
Daily Fibonacci 38.2% 1.3855
Daily Fibonacci 61.8% 1.3835
Daily Pivot Point S1 1.3816
Daily Pivot Point S2 1.3767
Daily Pivot Point S3 1.3731
Daily Pivot Point R1 1.3901
Daily Pivot Point R2 1.3937
Daily Pivot Point R3 1.3986

 

 

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