The GBP/USD currency pair continues to struggle, currently trading around the 1.3400 level in European trading on Wednesday. Every piece of key American economic data released is scrutinized by traders. This new data will greatly affect how the pair moves over the next few days. Current market sentiment suggests that further upside for GBP/USD appears limited as investors await critical reports on jobs, GDP, and inflation.
With half the trading session over, GBP/USD is stuck in a tight range around 1.3400 that shows how jittery traders are. Many analysts are cautious about the growth potential of the currency pair. This follows just ahead of some of the most important releases on the US economic calendar. These are led by the jobs data often referred to as highly anticipated, which may yield clues to jobs and workplace trends and overall economy.
Also of great importance will be the upcoming GDP data, which will help clarify whether or not the US economy is indeed strong. A positive GDP print may raise the odds of a more hawkish US Federal Reserve monetary policy. How this change could affect GBP/USD exchange rate Another huge concern with the market being PCE inflation data. This data serves as a forward-looking and crucial real-time indicator of inflationary pressures throughout the economy.
Even with the slow upward grind seen in the past few sessions, GBP/USD is still on the defensive around the 1.3400 mark. Traders are still being careful with the currency pair. Its inability to push past this resistance indicates that they too are likely awaiting more guidance from the next round of data releases. The interaction between these two reports will probably decide the short-term trajectory of GBP/USD.