The GBP/USD pair remains under the 1.3000 threshold as traders adopt a cautious stance ahead of crucial US economic data releases, including GDP and employment figures. With the US Dollar holding firm, market participants are positioning defensively, anticipating that a strong showing in US economic indicators could reinforce the Federal Reserve’s hawkish stance, putting further pressure on the British Pound.
The upcoming US GDP report is expected to provide insight into the resilience of the American economy, potentially influencing the Fed’s policy path. Robust GDP growth would likely bolster the USD, as it would support the case for sustained higher interest rates, further widening the rate differential between the US and the UK. This contrast continues to weigh on the pound, which remains vulnerable due to the Bank of England’s more cautious approach amid weaker economic signals in the UK.
Meanwhile, the US employment data will also be closely scrutinized, as it serves as a barometer for the Fed’s ability to maintain its restrictive policy without dampening job growth. Should employment numbers surprise to the upside, the USD may find additional support, keeping GBP/USD below the psychological 1.3000 level and potentially opening the door for further downside in the pair if sentiment shifts even more in favor of the dollar.
With markets on edge, the GBP/USD outlook remains cautious, with traders waiting to assess the impact of US data releases before committing to fresh positions.
