On Wednesday, GBP/USD saw a decline as market flows favored the US Dollar, keeping the Pound Sterling pinned near 1.2600. With limited economic data, the UK was absent from the calendar while US New Home Sales Change in May showed a decline of -11.3% MoM.
Investors are now looking ahead to Thursday for key data releases, including the Bank of England’s Financial Stability Report, US Durable Goods Orders, GDP revisions, and Initial Jobless Claims. Market expectations are for a slight uptick in US QoQ to 1.4% and a contraction in May’s Durable Goods Orders.
Friday will feature the UK’s quarterly GDP revisions and US Personal Consumption Expenditure Price Index, with hopes for easing inflation to prompt rate cuts from the Federal Reserve. Market bets on a September rate trim have slightly decreased, now approaching 60% odds.
The technical outlook for GBP/USD shows a downward trend, with major support at 1.2600 and resistance at 1.2800. A continued decline could push the pair towards April’s low of 1.2300.
Overall, the Pound Sterling remains influenced by monetary policy, economic data releases, and trade balance indicators. These factors play a crucial role in determining the value and direction of the GBP against other major currencies.