GBP/USD Price Analysis: Remains depressed below 1.2800, bullish potential seems intact
The GBP/USD pair continues with its struggle to gain any meaningful traction and extends its consolidative price move around the 1.2800 mark for the second successive day on Thursday. The setup, meanwhile, seems tilted in favour of bullish traders and warrants some caution before positioning for an extension of the recent pullback from the vicinity of the 1.2900 round figure, or the highest level since July 2023 touched last week.
The British Pound (GBP) might continue to draw support from expectations that the Bank of England (BoE) might keep interest rates higher for longer. In contrast, investors seem convinced that the Federal Reserve (Fed) will start cutting interest rates at the June policy meeting. This, along with the underlying strong bullish sentiment around the global equity markets, should cap the upside for the safe-haven Greenback and act as a tailwind for the GBP/USD pair. Read more...
GBP/USD holds above the 1.2800 mark ahead of US Retail Sales data
The GBP/USD pair hovers around the 1.2800 mark during the early Asian trading hours on Thursday. The modest uptick of the major pair is supported by the weaker US Dollar (USD). Nonetheless, a cautious mode in the market ahead of the key US event might boost the Greenback and cap the upside of the pair. GBP/USD currently trades near 1.2604, adding 0.05% on the day.
On Wednesday, the UK monthly GDP estimate rose 0.2% MoM in January from a 0.1% contraction in the previous reading, according to the Office for National Statistics (ONS). However, the improved data failed to lift the Pound Sterling as investors believe the UK economy is likely to end the 2023 H2 recession. Meanwhile, Industrial Production dropped 0.2% in January from December’s reading of 0.6% MoM gain. Read more...
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