GBP/USD Stalled Near Support on Eve of Key US Data

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This analysis highlights the GBP/USD’s current situation and upcoming factors that could influence its direction:

  • Price Range: GBP/USD is stuck in a narrow range around the 200-day Moving Average (1.2588) on thin Good Friday trading.
  • Downside Risk: Bearish technical indicators suggest the potential for a decline. However, the lack of trading volume due to the holiday might mute any significant price movements.
  • Key Data Release: The US PCE Price Index (inflation data), crucial for the Federal Reserve’s interest rate decisions, is due today.
  • Impact of Inflation Data: Higher than expected inflation could dampen expectations of Fed rate cuts in June, strengthening the US Dollar and potentially pushing GBP/USD lower.

Support and Resistance Levels:

  • Resistance: 1.2634, 1.2663, 1.2689, 1.2715
  • Support: 1.2600, 1.2588 (200-day SMA), 1.2575, 1.2518

Overall, the GBP/USD is on hold pending the US inflation data release. The outcome could determine the currency pair’s direction in the near term.