Pound Sterling Price News and Forecast: GBP/USD fails to extend the corrective pullback from weekly low

FXStreet Team FXStreet

GBP/USD portrays indecision around mid-1.2200s ahead of UK/US PMI data

GBP/USD treads water around 1.2265 during the early Asian session on Thursday, after failing to extend the recovery from a weekly low beyond 1.2315. The cable pair’s latest inaction could be the mixed plays, as well as cautious sentiment ahead of the preliminary PMIs for June month from the UK and the US.

GBP/USD

Overview
Today last price	1.2258
Today Daily Change	-0.0015
Today Daily Change %	-0.12
Today daily open	1.2273

Trends
Daily SMA20	1.2426
Daily SMA50	1.2531
Daily SMA100	1.2911
Daily SMA200	1.3214

Levels
Previous Daily High	1.2324
Previous Daily Low	1.2242
Previous Weekly High	1.2407
Previous Weekly Low	1.1934
Previous Monthly High	1.2667
Previous Monthly Low	1.2155
Daily Fibonacci 38.2%	1.2293
Daily Fibonacci 61.8%	1.2273
Daily Pivot Point S1	1.2235
Daily Pivot Point S2	1.2197
Daily Pivot Point S3	1.2152
Daily Pivot Point R1	1.2317
Daily Pivot Point R2	1.2362
Daily Pivot Point R3	1.24

UK inflation indicates that the Bank of England is moving too slow

GBPUSD is now trading at 1.22 - near the psychological low of 1.2000, where it received critical support in 2017 and 2020. But that support may not survive the third test of strength due to an increasingly threatening gap between inflation and interest rates, which would devalue debt. But this is a risky policy that could undermine confidence in the financial system, which will require decisive and brutal measures for the economy to restore.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.