GBP/USD is currently trading around 1.2620, stuck between long-term moving averages of 1.2700 and 1.2600 as mixed US data has left investors uncertain. The focus now shifts to US PCE Price Index inflation data to be released later in the week.
US Initial Jobless Claims for the week ended Jun 21 came in slightly better than expected, showing 233K new jobless benefit seekers. The four-week average also decreased, indicating a positive trend in the job market. US GDP was in line with expectations, with Q1 GDP revised to 1.4% and core PCE Price Index rising to 3.7%.
Investors are also waiting for insights from the US Presidential Election and UK GDP data. The upcoming US inflation data will be crucial as investors hope for a decrease in inflation numbers to push the Federal Reserve towards rate cuts.
GBP/USD technical outlook shows the pair struggling to break above the 200-day EMA near 1.2611, with downside pressure evident on intraday charts. The hourly chart indicates a bearish trend as buyers struggle to push the price above the 200-hour EMA at 1.2674.
Overall, market sentiment remains uncertain as investors await key economic data releases and political developments to guide their trading decisions.