GBP/USD weakens below 1.2900, US GDP data looms
The GBP/USD pair edges lower to 1.2895 during the Asian trading hours on Thursday. The higher possibility that the Bank of England (BoE) will begin cutting interest rates in August has undermined the Pound Sterling (GBP). In the absence of top-tier UK economic data releases, the GBP/USD pair will be influenced by the USD. The release of preliminary US Gross Domestic Product (GDP) for the second quarter (Q2) will be in the spotlight.
The majority of economists said in a Reuters poll that the BoE is expected to cut the bank rate to 5% at its August meeting next week. JP Morgan analyst, Allan Monks, noted that "we look for a 25 basis point rate cut at next week's meeting, although the call appears much closer than it did several weeks back. The case for lower rates is far from clear.” Read more...
GBP/USD Price Analysis: Stuck in range, clings to 1.2900
The Pound Sterling clings to minimal gains, though it remains stuck within the 1.2880-1.2940 range against the Greenback, unable to crack immediate resistance to push the GBP/USD pair toward the 1.3000 mark. At the time of writing, the major trades at 1.2926 after bouncing off daily lows of 1.2877.
The pair remained subdued for the fourth straight day, glued at around 1.2900; even though UK PMI data was stronger than expected, the pair failed to gain traction. Conversely, sellers pushed the GBP/USD three times below 1.2900 but failed to achieve a daily close below the latter, which could pave the way for a deeper pullback. Read more...
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