GBP/USD Trims Gains Above 1.2750 Amid US Dollar Rebounds

 Photo by Colin Watts on Unsplash 
 

  • GBP/USD trades with a mild negative bias near 1.2760 on Wednesday. 
  • The US CB Consumer Confidence Index improved to 102.0 in May. 
  • The IMF raised the UK growth forecasts but anticipated two to three rate cuts from the BoE.

The GBP/USD pair trades with mild losses around 1.2760 during the Asian session on Wednesday. The modest recovery of the US Dollar  (USD) and US yields amid the diminishing expectations of a rate cut by the US Federal Reserve (Fed) in September weighs on the major pair. The Fed’s Beige Book is due later on Wednesday and the Fed’s John Williams is due to speak.

Consumer Confidence improved slightly in May, the Conference Board reported on Tuesday. The figure rose to 102.0 in May from 97.0 in April, beating the estimation of 95.9. However, US consumers remain concerned about inflation, and many households believe interest rates will be higher over the next year.

Meanwhile, US Fed officials delivered more hawkish comments, boosting the Greenback broadly. Fed Governor Michelle Bowman said on Tuesday that she would have supported either waiting to start slowing the quantitative tightening pace or a more moderate tapering process than announced earlier this month. Fed Minneapolis President Neel Kashkari said that the central bank should wait for significant progress on inflation before cutting interest rates, adding that he expected no more than two rate cuts in 2024.

On the other hand, the expectation that the Bank of England (BoE) will start cutting the interest rate in June drags the Pound Sterling (GBP) lower. The International Monetary Fund (IMF) raised the UK growth forecasts but anticipated two to three rate cuts from the BoE. Amid the absence of top-tier economic data releases from the UK, the election speculation could drive movement in the Cable. The worries about political uncertainty might hurt the GBP and create a headwind for the GBP/USD pair. 
 

GBP/USD

OVERVIEW
Today last price 1.276
Today Daily Change -0.0010
Today Daily Change % -0.08
Today daily open 1.277
TRENDS
Daily SMA20 1.2613
Daily SMA50 1.2582
Daily SMA100 1.2634
Daily SMA200 1.2541
LEVELS
Previous Daily High 1.2778
Previous Daily Low 1.2734
Previous Weekly High 1.2761
Previous Weekly Low 1.2676
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2761
Daily Fibonacci 61.8% 1.2751
Daily Pivot Point S1 1.2743
Daily Pivot Point S2 1.2716
Daily Pivot Point S3 1.2699
Daily Pivot Point R1 1.2787
Daily Pivot Point R2 1.2804
Daily Pivot Point R3 1.2831

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