GBPUSD is trading steady near its highest level in 14 months today, hovering around 1.2780-70 on Friday morning in London. Traders trading the Pound Sterling currency pair are waiting for further clues to maintain the heavy rally that occurred the previous day. Today's forex news regarding GBPUSD has been summarized directly by us based on FxStreet.com's technical analysis.

The pound strerling has reportedly risen to a one-week high and continued to rise for the third day in a row, hitting a multi-month high. This is due to broad US dollar weakness and concerns over the Bank of England's (BoE) hawkish stance.

Earlier this week, a number of UK economic data failed to dampen GBP/USD gains due to concerns about the Bank of England’s (BoE) hawkish stance, especially after the release of previously upbeat inflation figures. In April, UK Gross Domestic Product (GDP) grew by 0.2% compared to the previous figure which recorded a decline of 0.3%. However, Industrial Production experienced a decline during the same month. In addition, Manufacturing Production also disappointed, as did the Services Index for the three months to April.

The US Dollar Index (DXY) edged up to pare its biggest daily decline in three months around 102.30. The rise boosted demand for the pound.

However, the previous day, the pound sterling suffered a sharp decline due to mixed US economic data and lack of market confidence in the Federal Reserve's interest rate hike in July, despite policymakers delivering the same message on Wednesday. On Thursday, US Retail Sales growth recorded a 0.3% increase in May, beating the previous estimate of -0.1% and the previous reading of 0.4%. Meanwhile, core Retail Sales growth excluding autos was in line with market expectations, at 0.1% for the month, compared to the previous reading of 0.4%. Furthermore, the New York Federal Reserve's Empire State Manufacturing Index jumped to 6.6 in June, beating the previous estimate of -15.1 and the previous reading of -31.8. Meanwhile, the Philadelphia Federal Reserve Manufacturing Index fell to -13.7 for the month, compared to the previous reading of -10.4 and below the market expectation of -14. In addition, US Industrial Production slowed down by -0.2% in May, below the forecast of 0.1% and the previous reading of 0.5%. Meanwhile, Initial Jobless Claims came in at an upward revision of 262,000 for the week ending June 9, compared to the forecast of 249,000. In this context, market participants appear to be more hawkish towards the Bank of England (BoE) than the Federal Reserve (Fed) and remain concerned about the strengthening of the pound, despite the recent price decline. In terms of further developments, UK Consumer Inflation expectations for June will influence the preliminary readings of the Michigan Consumer Sentiment Index (CSI) and five-year inflation expectations for the same month, which will influence the intraday movement of GBP/USD.

In technical analysis, although the RSI is showing overbought conditions indicating a potential decline in the GBP/USD price, the buyers of the currency pair remain optimistic unless there is a daily close below the previous resistance line stretching since late January, especially around the 1.2730-25 level.

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Warning!

This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

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