The GBP/USD pair edged lower during recent trading sessions, reflecting cautious market sentiment and limited liquidity typical of the holiday season. Analysts pointed to mixed economic data from the UK and US as contributing factors, with softer UK retail sales figures dampening optimism. The dollar remained supported by safe-haven demand and expectations of a resilient US economy, further weighing on the British pound.
Source – FXStreet
Technical analysis indicated a retest of key support near the 1.2450 level, with traders eyeing a potential breakout should momentum favor either direction. While short-term selling pressure persists, the broader trend remains uncertain amid the Federal Reserve’s focus on inflation and the Bank of England’s cautious stance on rate hikes. Market participants may look to upcoming GDP reports for further direction, though thin volumes could exaggerate price movements.
