GBP/USD consolidates its upside above 1.2750, investors await fresh catalysts

Source Fxstreet
May 27, 2024 23:22
  • GBP/USD trades with mild positive bias near 1.2770 in Tuesday’s early Asian session. 
  • Traders lower their bets on interest rate cuts by the Fed amid strong US data and the Fed’s hawkish comments. 
  • The BoE might stay on hold on the rate, boosting the GBP. 

The GBP/USD pair consolidates its upside around 1.2770 after reaching two-month highs during the early Asian session on Tuesday. The USD Index (DXY) remains under some selling pressure at around 104.60, which provides some support to the major pair. Traders await the US Conference Board’s Consumer Confidence, FHFA’s House Price Index, along with the Fed’s Neel Kashkari, Mary Daly, and Lisa Cook speeches later on Tuesday. 

The markets lower their bets on interest rate cuts by the US Federal Reserve (Fed) and see a 49% chance of rate cuts in September, down from 63% recorded a week ago, according to the CME FedWatch tool. The US key data this week might offer some hints about the economic outlook and inflation trajectory. The first reading of US GDP economic growth in the first quarter will be due on Thursday ahead of the US Core Personal Consumption Expenditures Price Index (Core CPE), the Fed’s preferred inflation gauge. The hotter-than-expected US inflation data might lift the Greenback and weigh on the GBP/USD in the near term. 

On the other hand, the Pound Sterling (GBP) gains momentum as traders anticipate that the Bank of England (BoE) will maintain its borrowing costs for longer to cool inflation. Citigroup strategist Jamie Searle said that the UK election in July will “further reduce the chance of a near-term BOE cut, adding that it lowers the risk of a later election interfering with the BOE cycle and focusing only on data-dependency.

GBP/USD

Overview
Today last price 1.2771
Today Daily Change 0.0033
Today Daily Change % 0.26
Today daily open 1.2738
 
Trends
Daily SMA20 1.2603
Daily SMA50 1.2581
Daily SMA100 1.2633
Daily SMA200 1.2541
 
Levels
Previous Daily High 1.2751
Previous Daily Low 1.2676
Previous Weekly High 1.2761
Previous Weekly Low 1.2676
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2722
Daily Fibonacci 61.8% 1.2705
Daily Pivot Point S1 1.2692
Daily Pivot Point S2 1.2646
Daily Pivot Point S3 1.2617
Daily Pivot Point R1 1.2767
Daily Pivot Point R2 1.2797
Daily Pivot Point R3 1.2842

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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