GBPUSD is close to A multi-week High with Revisions to growth. UK GDP figures exceeded predictions. Awaits US PCE
GBPUSD supported by UK economy expansion
The Office for National Statistics (ONS) reported that the UK economy grew by 0.1% in Q4 2022. Which is 1/10th of a percentage point more than forecast. The Q3 statistics were also updated to -0.1% by the same amount.
The quarterly GDP level for Quarter 4 2022 has been revised up from the prior estimate of 0.8% below to 0.6%. Below its pre-coronavirus (COVID-19) level (Quarter 4 2019). The prior forecast of 4.0% for 2022’s GDP growth has now been revised up to 4.1%. Real GDP grew by 0.6% from the identical quarter a year prior.
GBPUSD shows marginal strength on interest rate pause bets
The pound (GBPUSD) made a modest advance, returning to above 1.2400 for the first time in a month, according to the ONS report. The sterling price has been slightly higher than the US dollar over the past few weeks.
the persistent speculation in the market that the Fed might have completed its aggressive rate hike cycle. Additionally, there is increasing speculation that the US Federal Reserve will begin lowering interest rates at the end of Q3 and the beginning of Q4. keeps putting pressure on the dollar.
The release of the closely watched US core PCE data this afternoon at 13:30 UK time. Shows the most recent glimpse at price pressures in the US. These rate-cut expectations will be dashed if US inflation stays persistently elevated and firm which will increase the value of the US currency.
Economic Activity (PCE)
The most recent information released by Eurostat on Friday, Revealed that the yearly Harmonized Index of Consumer Prices (HICP) for the Eurozone, decreased to 6.9% in March from 8.5% in February. The market anticipated a decrease in the inflation rate to 7.1% during the period of reporting.
Technical Perspective
Even though the pair may begin to appear pricey, the remainder of the setup is still favorable when looking at the daily GBPUSD graph. At the moment, the sequence of the three moving averages is positive.
Additionally, the Pound is trading above all three of them. The current resistance has turned support near the 1.2292 level, and it continues to hold there.
The current double top at 1.2448 appears to be the most likely trigger for any upward movement. Additionally, 1.2667 would be the subsequent area of resistance in the event of a confirmed break above this level.
