GBP/USD eyes 1.2050 as risk-off impulse cools down further ahead of US/UK PMIs


  • GBP/USD is marching towards 1.2050 as the risk-off market mood has lost traction.
  • The FOMC minutes will provide detailed guidance on the interest rate policy.
  • Preliminary US/UK PMIs are expected to scale down due to higher interest rates.

The GBP/USD pair has printed a fresh day high at 1.2045 in the early London session. The Cable is looking to extend its gains to 1.2050 as the risk-off impulse has faded away despite no negative development on the US-China tensions and three missiles launched by North Korea near Japan’s region.

The US Dollar Index (DXY) has refreshed its day low at 103.52 as investors ignored the fears of persistent inflation and a robust labor market in the United States. S&P500 futures have recovered their entire losses and are looking to shift into a positive trajectory amid the risk appetite theme.

No doubt, the declining trend in the US inflation is still intact as the figures have dropped from their prior numbers. However, the releases of the Consumer Price Index (CPI) and Producer Price Index (PPI) above its estimates have cleared that the battle against inflation is far from over yet. And, the release of the upbeat monthly Retail Sales indicates that consumer spending has recovered vigorously.

Going forward, the release of the Federal Open Market Committee (FOMC) minutes will provide detailed guidance on the interest rate policy ahead.

But before that, the release of the US S&P PMI data will be keenly watched. The preliminary Manufacturing PMI (Feb) is seen lower at 46.8 vs. the prior release of 46.9. And the Services PMI is seen at 46.6 against the former release of 46.8.

Meanwhile, the Pound Sterling remained in action after the United Kingdom's Telegraph reported that UK Prime Minister (PM) Rishi Sunak has been forced to “pause” his Northern Ireland protocol deal amid a backlash from senior Tories and unionists.

Going forward, Tuesday’s S&P PMI (Feb) data will remain in the spotlight. The preliminary Manufacturing PMI is seen lower at 46.8 while the Services PMI is expected to decline to 48.3.

GBP/USD

Overview
Today last price 1.204
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.2044
 
Trends
Daily SMA20 1.2197
Daily SMA50 1.2174
Daily SMA100 1.1903
Daily SMA200 1.194
 
Levels
Previous Daily High 1.2049
Previous Daily Low 1.1915
Previous Weekly High 1.227
Previous Weekly Low 1.1915
Previous Monthly High 1.2448
Previous Monthly Low 1.1841
Daily Fibonacci 38.2% 1.1998
Daily Fibonacci 61.8% 1.1966
Daily Pivot Point S1 1.1956
Daily Pivot Point S2 1.1869
Daily Pivot Point S3 1.1822
Daily Pivot Point R1 1.209
Daily Pivot Point R2 1.2137
Daily Pivot Point R3 1.2224

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD retests daily lows near 1.0850 on softer US PPI

EUR/USD retests daily lows near 1.0850 on softer US PPI

EUR/USD remains on the defensive against the backdrop of another positive day in the US Dollar, always amid intense tariff jitters and weaker-than-expected US Producer Prices in February.

EUR/USD News
Gold looks bid and trades close to $2,950

Gold looks bid and trades close to $2,950

Gold extends its winning streak, moving toward the $2,950 mark after notching gains over the past two sessions. Heightened fears of an economic downturn, spurred by escalating trade tensions, have fueled a risk-off environment—further boosting the allure of the precious metal as a safe-haven asset.

Gold News
GBP/USD remains offered near 1.2940 on USD buying

GBP/USD remains offered near 1.2940 on USD buying

The continuation of the buying interest in the Greenback keeps the risk complex under pressure, motivating GBP/USD to recede to the 1.2940 region and reverse two consecutive days of gains for the time being.

GBP/USD News
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation

Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation

Metaverse tokens are cryptocurrencies associated with virtual worlds, digital economies, and immersive online experiences. Tokens like Sandbox, Decentraland, and Axie Infinity, three of the most prominent assets during the Metaverse boom of 2021, continue to face correction since they topped in early December.

Read more
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances

Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances

The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025