On Thursday, GBP/USD experienced a turnaround as positive economic data from both the UK and US boosted market sentiment. The US Retail Sales data exceeded expectations, easing concerns of a recession and pushing Cable to higher levels. Additionally, the Pound Sterling gained momentum from UK GDP growth meeting expectations and Manufacturing Production surpassing forecasts in July.
Looking ahead to Friday, UK Retail Sales are expected to rebound with forecasts indicating a rise in both MoM and YoY figures. On the US side, the University of Michigan’s Consumer Sentiment Survey Index is expected to show an improvement in economic expectations.
Technical Outlook for GBP/USD
Following Thursday’s bullish recovery, GBP/USD remains above the 50-day Exponential Moving Average (EMA) at 1.2787. Although the pair reached the 1.2800 mark early in the day, it fell short of establishing a new two-week high and is currently trading around 1.2850.
Diving Deeper into Pound Sterling
GBP is the oldest currency globally and the official currency of the United Kingdom. It is the fourth most traded currency, with key pairs including GBP/USD, GBP/JPY, and EUR/GBP. The value of the Pound Sterling is influenced by factors such as monetary policy decisions by the Bank of England, economic indicators like GDP and employment data, and the Trade Balance.
Overall, positive economic data and market sentiment have propelled GBP/USD higher, highlighting the importance of staying informed about key economic indicators and trends in the financial markets for making informed investment decisions.