GBPUSD continues to climb after two-week losses. On Thursday, a few investors of GBPUSD as the USD moderately retreats from a multi-week high.

On Thursday, the pair makes some progress. Halting a portion of the day’s decline to levels slightly below the psychological milestone of 1.2000. More than a week low.

Through the first half of the European session. The pair maintains its small intraday rises and is currently selling slightly around the mid-1.2000s mark/ Despite missing follow-through.

GBPUSD was impacted by The paused US dollar due to falling US bond yields, but with limited losses. Gawkish Fed views.

A minor US Dollar decline from a 6 top reached on Wednesday. Sparked by falling US Treasury bond rates, which in turn provides some support for the GBPUSD pair.

Nonetheless, the likelihood of more Fed policy tightening and the threat of an impending recession both serve to restrict the safe-haven Greenback’s fall.

In addition, speculation that the Bank of England’s (BoE) current rate-hiking cycle is nearing its conclusion. Serves to restrain the major’s potential for considerable gains.

GBPUSD fears hawkish Fed Stance

The belief among investors is that the US central bank will maintain its hardline outlook. At least a 25 bps lift-off is now anticipated for the upcoming FOMC meetings in March and May.

The Tuesday US CPI statistics and subsequent remarks by a number of Fed officials both confirmed the wagers. Highlighting the necessity of more intrada rate increases to totally control inflation.

This might prevent traders from making extreme negative wagers on the USD, which would cap the GBPUSD duo.

BOE stance likely to be less hawkish

The BoE is less under pressure to implement aggressive rate hikes. This coming ahead as a result of the UK consumer inflation numbers that were revealed on Wednesday. That was weaker than anticipated.

The BoE is less under pressure to implement aggressive rate hikes. This coming ahead as a result of the UK consumer inflation numbers that were revealed on Wednesday.

That was weaker than anticipated.  The GBPUSD bulls should exhibit caution in light of this and brace themselves for any more intraday appreciation.

Traders are currently looking for short-term chances in the US economic calendar die. Which includes the Philadelphia Fed Manufacturing Index. The typical Weekly Initial Jobless Claims, Building Permits, and Housing Starts.

Intrinsic Landscape of GBPUSD

Following its terrible day of losses in 2 weeks. The GBPUSD posted a modest recovery overnight. That persisted after the European open this morning.

Cable was underselling stress due to easing UK inflation and encouraging US retail sales figures, which maintained the bears firmly in charge.

The weaker UK Inflation data in view

The unexpectedly negative UK inflation data was revealed yesterday. Caused a drop in rate increase predictions. With market players now pricing at a high rate below 4.5% for the first time since February 2.

With market players now pricing at a high rate below 4.5% for the first time since February 2.  The Bank of England’s (BoE) decision to put an early halt to interest rate hikes. Following this week’s encouraging statistics. Which may have given GBP greater selling pressure going ahead.

Important Key Economic Event Schedule

TECHNICAL PERSPECTIVE

Yesterday, a bearish enveloping candle closed on the daily period. The psychological 1.2000 handles were not broken by it.

We have been unable to produce a daily candle near the psychological level twice in the past 10 days. Now, the GBPUSD price appears to be trapped in a 200-pip range between the 50 and 200-day moving averages. With a breakthrough appearing doubtful.

Considering the basics at work.  Any more upward movement might be limited while a downward breakout must compete. Support is located at the 1.2000 handles, and below that, around 1.1940, is the 200-day MA.

Source: TradingView

At work, remember the fundamentals. While a bearish breach must contend, further upward progress may be constrained. The 200-day MA is placed approximately 1.1940 points underneath the 1.2000 handles. Which serves as support.

MAJOR RESISTANCE LEVELS:

• 1.2100
• 1.2182

MAJOR SUPPORT LEVELS:

• 1.2040
• 1.2000
• 1.1940