The GBP/USD pair is currently trading at its highest level in three weeks, just below 1.2900. Technical buyers are likely to show interest if the pair clears the 1.2900 level. The US Dollar’s valuation could be influenced by risk perception in the absence of major data releases.
On Thursday, positive data from the US, including a decline in Initial Jobless Claims and a rise in Retail Sales, boosted the USD and pushed GBP/USD lower towards 1.2800. However, as risk sentiment improved in the financial markets, GBP/USD regained ground and closed the day in positive territory.
Looking ahead, the US economic calendar will feature July Housing Starts, Building Permits data, and the University of Michigan’s preliminary Consumer Sentiment Index for August. Investors are expected to focus on risk perception rather than economic figures.
At the moment, US stock index futures are up, which could weaken the USD and allow GBP/USD to move higher. Profit-taking and weekend flows may also affect inter-market correlations as the week ends.
GBP/USD Technical Analysis
Key resistance levels for GBP/USD include 1.2900, 1.2950, and 1.3000. On the downside, support levels are at 1.2850-1.2840, 1.2800, and 1.2760.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. It is the fourth most traded currency in the world, accounting for 12% of all transactions. The value of GBP is influenced by monetary policy decisions, economic indicators, and trade balance data.
Overall, the GBP/USD pair is currently in a bullish trend, with technical levels indicating potential resistance and support areas. Traders and investors should keep an eye on risk sentiment and upcoming economic data releases to gauge the future direction of the pair.