GBP/USD treads water, with upside attempts limited below 1.2670

The Pound finds support above 1.2580 but it remains unable to extend gains beyond 1.2670.
Soft UK data and hawkish comments from Fed speakers are weighing on the Sterling.
The USD has failed to capitalize on better-than-expected US GDP and Jobless Claims figures

Guillermo Alcala FXStreet

The Sterling found support at the 1.2580 area earlier today, before bouncing up, favoured by a somewhat softer US Dollar during Thursday’s US Session. The pair, however, remains capped below 1.2665, which leaves the broader bearish trend unchanged.

The pair has been trading back and forth within a 100-pip horizontal channel, consolidating losses following a decline from Year-To-Date highs near 1.2900 in early March.

Soft UK data and hawkish Fedspeak weighing on the GBP

UK macroeconomic figures have weighed on the Sterling. The quarterly GDP revealed that the country entered recession in the last months of 2023 and inflation has cooled faster than expected, boosting hopes that the BoE could start cutting rates at the same time as the Fed, if not earlier.

In the US, Fed Governor Waller suggested that the Fed might keep interest rates higher for longer, which provided a fresh boost to the US Dollar. Investors are now looking at Friday’s PCE Prices Index to reassess the chances of a June rate cut

Macroeconomic data released on Thursday revealed that the US economy grew at a faster-than-expected pace in the fourth quarter while Weekly Jobless Claims declined, adding to the evidence of the strong US labour market. The impact on the US Dollar, however, has been minor.

GBP/USD Technical levels to watch

GBP/USD

Overview
Today last price	1.2628
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.2641

Trends
Daily SMA20	1.2719
Daily SMA50	1.2679
Daily SMA100	1.2649
Daily SMA200	1.2591

Levels
Previous Daily High	1.2641
Previous Daily Low	1.2606
Previous Weekly High	1.2804
Previous Weekly Low	1.2575
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2628
Daily Fibonacci 61.8%	1.2619
Daily Pivot Point S1	1.2617
Daily Pivot Point S2	1.2593
Daily Pivot Point S3	1.2581
Daily Pivot Point R1	1.2653
Daily Pivot Point R2	1.2665
Daily Pivot Point R3	1.2688

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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