The British Pound (GBP) edged lower against the US Dollar (USD) on Thursday, as GBP/USD slipped slightly and remained confined within a tight consolidation range just beneath the key 1.3300 mark. Investors digested a pair of broadly in-line economic reports that offered little to spark directional momentum, with both the UK and US releasing data that met or exceeded expectations.
The UK economy posted stronger-than-anticipated growth in the first quarter, with Gross Domestic Product (GDP) expanding by 0.7% quarter-over-quarter—well above market forecasts. The robust figure helped reaffirm expectations that the British economy is holding up despite persistent global headwinds.
Meanwhile, US data showed signs of easing inflationary pressures. The Producer Price Index (PPI) rose just 0.1% month-over-month in April, offering reassurance that the impact of newly imposed tariffs has yet to significantly filter through into producer-level pricing. The data helped temper fears of near-term inflation shocks and allowed markets to remain in risk-on mode.
Looking ahead, traders are focused on Friday’s release of the University of Michigan’s Consumer Sentiment Index. Forecasts call for a modest rebound to 53.4, after sentiment hit a two-year low of 52.2 last month following four consecutive monthly declines. A stronger reading could lend renewed support to the US Dollar, while a continued slump may weigh on the greenback.
GBP/USD Technical Outlook: Rangebound With Mild Bullish Bias
From a technical standpoint, GBP/USD remains rangebound, struggling to overcome resistance at the 1.3300 threshold. Since retreating from the recent high of 1.3445 in early April, the pair has been unable to regain upward momentum. However, bullish undertones persist, supported by firm demand above the 50-day Exponential Moving Average (EMA), which currently sits near 1.3110.
Unless GBP/USD can decisively break above 1.3300, further sideways action is likely in the near term. A move below the EMA could shift the bias back toward the downside, while a sustained breakout above recent highs would signal renewed bullish strength and a potential push toward the 1.3400–1.3450 zone.
Related Topics:
- Who Controls Pound Sterling?
- Can I Use British Pounds in Canada?
- What Currency is Used in the UK Now?
