GBP/USD faced a downward trend, dropping over 0.5% on Wednesday after hitting a high of 1.3266. Despite efforts to rebound on Thursday, the pair continues to face challenges in gaining momentum.
Investors are eagerly anticipating the US Q2 GDP revision and the release of weekly Initial Jobless Claims data for potential market impact.
Market Analysis
Amid a cautious market sentiment, the US Dollar (USD) strengthened on Wednesday, leading to a correction in GBP/USD. The USD Index rose by 0.5%, influencing the pair’s decline.
Despite the USD’s continued strength, GBP/USD’s downward movement has been limited. The Euro’s decline against the USD indicates capital outflows from the Euro, benefiting Pound Sterling. EUR/GBP is down by 0.3%, trading near 0.8400.
Today’s focus remains on the US Initial Jobless Claims data, with expectations of 232,000 first-time applications. A lower figure could boost the USD further, impacting GBP/USD negatively.
Technical Analysis
GBP/USD has broken below the ascending channel, signaling a potential end to the uptrend. However, the Relative Strength Index (RSI) remains above 50, indicating a lack of strong bearish momentum.
Key support levels include 1.3130 and 1.3100, while resistance levels are at 1.3200, 1.3260, and 1.3300.
Overall, market uncertainty and key economic data releases are driving fluctuations in GBP/USD, impacting investor sentiment and trading strategies.