The What is the next prediction for Ethereum?GBP/USD currency pair demonstrated renewed strength during Thursday's trading session, advancing approximately 0.5% to push back above the psychologically significant 1.2900 threshold. This upward movement occurred despite growing concerns about international trade relations that typically weigh on risk-sensitive currencies.
Market participants appear to be discounting potential tariff impacts for now, focusing instead on upcoming economic indicators from both sides of the Atlantic. The pair's ability to maintain these gains will likely depend on fundamental data releases scheduled for the remainder of the week.
Friday's economic calendar presents critical data points from both economies, with UK GDP figures and Retail Sales data preceding the closely watched US inflation metrics. These releases could determine whether the current rebound represents a sustainable trend or merely temporary positioning ahead of significant announcements.
The British pound found support during the session as traders digested commentary from UK policymakers regarding trade relations. While acknowledging potential economic challenges from proposed tariffs, officials emphasized their commitment to protecting national economic interests in ongoing negotiations. Similar sentiments have emerged from other major economies engaged in trade discussions, creating a complex backdrop for currency valuations.
Economic projections suggest the UK's final Q4 GDP reading will confirm earlier estimates, maintaining the established growth trajectory. However, February's Retail Sales figures are anticipated to show modest contraction, potentially reflecting ongoing consumer caution amid economic uncertainty. These contrasting indicators could create mixed signals for sterling traders.
Across the Atlantic, the US economic calendar features its own set of influential data points. While revised GDP figures typically generate limited market reaction, Friday's Core PCE inflation reading carries substantial weight for monetary policy expectations. Current consensus estimates project annualized inflation to reach 2.7% for February, a level that could influence the Federal Reserve's policy trajectory.
Technical Perspective on GBP/USD
From a technical standpoint, the pair continues to encounter resistance near the 1.3000 psychological barrier despite recent buying interest. The current price action suggests market participants remain cautious about extending positions beyond recent ranges, with the 200-day EMA around 1.2720 providing substantial support on pullbacks.
The daily chart reveals a market attempting to establish higher lows while struggling to overcome overhead supply. This pattern typically indicates balanced participation between buyers and sellers, with neither side able to establish sustained control. Traders will monitor whether the current rebound can generate sufficient momentum to challenge recent highs or if the pair remains rangebound between established technical levels.
Market dynamics suggest participants are awaiting clearer signals from fundamental developments before committing to extended positions. The interplay between economic data releases and technical levels will likely determine near-term price direction, with particular attention on whether the pair can maintain its position above key moving averages.
