The GBP/USD pair remains near the 1.24 level as traders brace for key US economic data. After a brief rally, the pound has struggled to maintain its momentum amid cautious sentiment in global markets. Investors are closely watching upcoming reports that could shape expectations for future Federal Reserve policy moves.
Market participants are particularly focused on the US GDP and core PCE inflation data, both of which are critical indicators for monetary policy. A stronger-than-expected reading could reinforce hawkish Fed expectations, putting additional pressure on the pound. Conversely, weaker data may give the Bank of England some breathing room as it navigates economic uncertainties.
The US dollar remains resilient, supported by steady Treasury yields and a cautious risk environment. Recent statements from Fed officials have signaled a commitment to keeping interest rates elevated until inflation trends convincingly downward. This stance has limited the upside potential for GBP/USD, keeping it within a narrow trading range.
Meanwhile, the UK economy continues to face headwinds, with mixed data weighing on investor confidence. While inflation has moderated, growth remains sluggish, raising concerns about the BoE’s ability to sustain higher rates. Any signs of further economic weakness could fuel speculation of earlier rate cuts, further pressuring the pound.
Technical analysis suggests that GBP/USD is struggling to break above the 1.2450 resistance level. A decisive move above this threshold could open the door for further gains, but failure to hold current levels may lead to a retest of 1.2350 support. Traders remain cautious as volatility is expected to increase around key data releases.
With upcoming US economic reports poised to drive short-term direction, traders are likely to stay on edge. Any surprises in growth or inflation figures could trigger sharp movements in GBP/USD, making it a key pair to watch in the coming sessions.
