GBP/USD Price Forecast: Bearish outlook remains in play below 1.2450
The GBP/USD pair trades with mild gains around 1.2445 during the early European trading hours on Thursday. A modest decline in the Greenback provides some support to the major pair. Investors will closely watch the advance US Gross Domestic Product (GDP) data for the fourth quarter (Q4), which is due later on Thursday. Also, the weekly Initial Jobless Claims and Pending Home Sales will be published.
According to the daily chart, the bearish outlook of GBP/USD remains in place, with the price holding below the key 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) hovers around the midline, indicating that the consolidation cannot be ruled out. Read more…
GBP/USD tests the water near 1.24 as key US data looms
GBP/USD spun in a tight circle on Wednesday, briefly dipping into the 1.2400 handle after the Federal Reserve (Fed) kept interest rates on hold. Rate futures markets broadly forecast the lack of movement on interest rates, with the Fed citing no particular reason to rush into further rate cuts. The back half of the trading week will be key US data releases to see if the Fed made the right call.
US fourth-quarter Gross Domestic Product (GDP) growth will be printing on Thursday. Median market forecasts are expecting a step down in annualized GDP growth, expecting a print of 2.6% versus the previous 3.1%. Inflation pressures still remains a concern, and the Q4 GDP Price Index is expected to tick upwards to 2.5% from 1.9%. Read more…
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