The British pound remains under pressure against the US dollar, consolidating just below the mid-1.2700s, as market participants show caution amid mixed economic signals. While the pair briefly edged higher in early trading, it has struggled to maintain momentum, with upside potential seeming limited in the near term.
The ongoing strength of the US dollar, bolstered by resilient economic data and expectations of a prolonged hawkish stance from the Federal Reserve, continues to cap gains for GBP/USD. At the same time, the pound faces headwinds from domestic challenges, including uncertainty surrounding the UK economy and ongoing concerns about inflation.
Analysts note that the pair remains vulnerable to fluctuations driven by external factors such as global risk sentiment and shifts in central bank policies. While the potential for a significant rally seems constrained, GBP/USD may find support in the low 1.2700s, provided that US economic data fails to surprise on the upside.
In the coming days, market watchers will focus on key US data releases, including jobless claims and inflation figures, which could provide further direction for the currency pair. However, until a clear catalyst emerges, GBP/USD is likely to continue its sideways consolidation, with any significant move higher facing resistance in the 1.2750-1.2800 range.
