Pound Sterling could face strong resistance at 1.2560

GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2560

GBP/USD closed the third consecutive day in positive territory on Thursday and climbed to its highest level in two weeks at 1.2540 early Friday. The pair retreated toward 1.2500 in the European session but the technical outlook suggests that the bullish bias remains intact.

The US Dollar (USD) weakened against its rivals after disappointing US data on Thursday. The US’ Gross Domestic Product (GDP) expanded at an annual rate of 1.6% in the first quarter. This reading followed the 3.4% growth recorded in the last quarter of 2023 and came in below the market expectation for an expansion of 2.5%. Read more…

Pound Sterling exhibits strength ahead of US core PCE inflation

The Pound Sterling (GBP) clings to gains near 1.2500 against US Dollar (USD) in Friday’s early American session. The GBP/USD pair holds gains as recent survey data has shown an improved economic outlook for the United Kingdom even though the Bank of England (BoE) is maintaining interest rates higher. 

The preliminary PMI report from S&P Global/CIPS for April released on Tuesday showed that activity in the services sector remains robust, pushing overall activity higher despite a lagging Manufacturing PMI. The data also showed that new business inflows in the service sector remain strong. Read more…