GBP/USD is holding its ground in the positive territory, hovering near the 1.2850 level on Thursday. Despite a minor setback on Wednesday, the pair’s technical outlook remains bullish, indicating potential for further gains in the near term.
Investors are eagerly awaiting mid-tier macroeconomic data releases from the US, which could potentially impact the pair’s movement in the coming sessions.
Key Highlights:
- GBP/USD maintains positive stance near 1.2850 on Thursday.
- Technical analysis suggests a bullish outlook for the pair.
- US economic data releases could influence market sentiment.
GBP/USD Technical Analysis:
GBP/USD closed above the 200-period Simple Moving Average and the Relative Strength Index is showing signs of recovery. Key levels to watch include 1.2850 as a pivot level, with 1.2900 and 1.2950 as potential resistance levels. On the downside, support levels are at 1.2830, 1.2800, and 1.2760.
Market Insights:
Following the release of UK’s GDP data, which showed a growth rate of 0.9% in the second quarter, GBP/USD saw a boost in the European session. Positive data from the UK, coupled with improved market sentiment, contributed to the pair’s upward movement.
Upcoming US economic data, including Initial Jobless Claims and Retail Sales figures, will be crucial in determining the pair’s direction. A strong performance in these releases could help the US Dollar gain strength and limit GBP/USD’s upside potential.
However, if risk sentiment remains positive in the financial markets, GBP/USD could continue to climb higher, even in the face of a stronger USD. US stock index futures are currently showing a modest uptick, indicating a positive market outlook.
Analysis Breakdown:
In summary, GBP/USD is holding steady near the 1.2850 mark with a bullish technical outlook. Positive UK economic data and a favorable market sentiment are supporting the pair’s upward momentum. Key resistance levels to watch are at 1.2900 and 1.2950, while support levels are at 1.2830 and 1.2800. US economic data releases will play a crucial role in determining the pair’s future trajectory, with potential for further gains if risk appetite in the market remains strong.