GBP/USD remains on the defensive below the 1.2700 area, UK GDP eyed

GBP/USD remains supported above 1.2680, ahead of the key data.
The UK GDP YoY is expected to grow by 0.2% in June, versus 0.1% prior.
The US Core CPI fell to 4.7% from 4.8%, Initial Jobless claims totaled 248,000.
Investors will keep an eye on the UK Gross Domestic Product (GDP), US Producer Price Index (PPI) data.

Lallalit Srijandorn FXStreet

The GBP/USD pair remains on the defensive around 1.2680 during the early Asian session on Friday. Market participants turn cautious ahead of the top-tier economic data released from the UK and US.

Market players anticipated that the UK could avoid the recession as the data shows inflationary pressures easing. The highlight of the day will be the UK monthly Gross Domestic Product (GDP) report on Thursday. The growth rate is expected to grow by 0.2% in June, compared to 0.1% prior. While the quarterly GDP is expected to stay at 0% versus 0.1% prior.

The weaker than expected figure could refrain the Bank of England (BoE) from aggressively tightening policy. This, in turn, weighs on the Pound Sterling and acts as a headwind for the GBP/USD pair.

On the US Dollar front, the US Consumer Price Index (CPI) rose to 3.2% YoY from 3% in June. The figure was below the market consensus of 3.3%. While the Core CPI figure, which excludes volatile food and energy prices, fell to 4.7% from 4.8%. Additionally, the US Initial Jobless Claims increased to 248,000, above the expectation of 230,000. In response to the data, the US Dollar reversed its course and strengthened against its rivals.

The CME FedWatch Tools indicated that the odds for a rate hike in September is at 10%, while for the November meeting, it dropped to 23.6% from 33.8% a month ago.

Moving on, the UK will release the preliminary Q2 Gross Domestic Product (GDP) on Friday. Also, the UK Industrial Production and Manufacturing production data will be due. On the US docket, the key event will be the US Producer Price Index (PPI) for July. These data could provide hints for a clear direction in GBP/USD.

GBP/USD

Overview
Today last price	1.2685
Today Daily Change	0.0009
Today Daily Change %	0.07
Today daily open	1.2676

Trends
Daily SMA20	1.2844
Daily SMA50	1.276
Daily SMA100	1.2604
Daily SMA200	1.2344

Levels
Previous Daily High	1.2819
Previous Daily Low	1.267
Previous Weekly High	1.2873
Previous Weekly Low	1.2621
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2727
Daily Fibonacci 61.8%	1.2762
Daily Pivot Point S1	1.2624
Daily Pivot Point S2	1.2573
Daily Pivot Point S3	1.2475
Daily Pivot Point R1	1.2773
Daily Pivot Point R2	1.2871
Daily Pivot Point R3	1.2922

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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