GBP/USD consolidates around mid-1.2700s, downside seems cushioned amid softer USD

Source Fxstreet
Jun 3, 2024 00:50
  • GBP/USD draws support from a softer USD and bets for a delayed BoE rate cut.
  • The UK political uncertainty keeps a lid on any meaningful upside for the GBP.
  • Traders now look forward to the release of the US ISM PMI for a fresh impetus.

The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band, around mid-1.2700s during the Asian session. The downside, meanwhile, remains cushioned in the wake of a modest US Dollar (USD) weakness, weighed down by signs of easing inflationary pressures in the United States (US). 

The US Bureau of Economic Analysis reported on Friday that the Personal Consumption Expenditure Price Index (PCE) held steady at 2.7% on a yearly basis in April. Adding to this, the Core PCE Price Index, which excludes volatile food and energy prices, matched consensus estimates and rose 2.8% on a yearly basis. The data should allow the Federal Reserve (Fed) to cut interest rates later this year. Apart from this, a generally positive risk tone seems to undermine the safe-haven USD, which, in turn, is seen acting as a tailwind for the GBP/USD pair. 

The British Pound (GBP), on the other hand, draws support from expectations that more persistent price pressures in the United Kingdom (UK) might force the Bank of England (BoE) to keep interest rates at their current level for a little bit longer. That said, the uncertainty ahead of the UK general election on July 4 is holding back the GBP bulls from placing aggressive bets and capping the upside for the GBP/USD pair. Traders now look to the release of the Manufacturing PMIs from the UK and the US for some impetus ahead of the US ISM Manufacturing PMI.

GBP/USD

Overview
Today last price 1.2749
Today Daily Change 0.0007
Today Daily Change % 0.05
Today daily open 1.2742
 
Trends
Daily SMA20 1.2655
Daily SMA50 1.2585
Daily SMA100 1.2634
Daily SMA200 1.2542
 
Levels
Previous Daily High 1.2766
Previous Daily Low 1.27
Previous Weekly High 1.2801
Previous Weekly Low 1.2681
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2741
Daily Fibonacci 61.8% 1.2726
Daily Pivot Point S1 1.2706
Daily Pivot Point S2 1.2671
Daily Pivot Point S3 1.2641
Daily Pivot Point R1 1.2772
Daily Pivot Point R2 1.2802
Daily Pivot Point R3 1.2838

 

 

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