Photo by Colin Watts on Unsplash 
 

• GBP/USD ends Thursday down 0.78%, trades below all major SMAs as it hits four week low.
• US macro data trims dovish Fed bets, bolstering the Dollar, weighing on Sterling.
• US docket features Core PCE, Consumer Sentiment and Fed speakers.

The GBP/USD ended Thursday’s session with losses of over 0.78%, seeming poised to test lower prices as a scarce economic docket in the UK would leave traders adrift to dynamics linked to the US Dollar. The pair trades below the 20, 50, 100 and 200-day SMAs, after puking below 1.3400 as Friday’s Asian session begins.

Serling fell to a four-week low of 1.3324 on Thursday after the release of macroeconomic news in the US, spurred a trim of Fed dovish bets, which boosted the Greenback. From a technical perspective, if GBP/USD slides beneath the 1.33 handle, the next area of interest would be the 200-day SMA At 1.3124.

Coming up: Tranche of US data, including core PCE and Fed speakers
 

The docket in the UK is empty on Friday, aside from UK’s T-bill auctions. In the US. the Federal Reserve’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index is expected to dip by 0.2% MoM down from 0.3% a month ago. In the twelve months to August, core PCE is projected to remain unchanged at 2.9% as in July.

Also, traders would eye for the release of the University of Michigan (UoM) Consumer Sentiment final print and speeches by Fed officials like Richmond Fed President Thomas Barkin and Fed Governor Michelle Bowman.

GBP/USD daily chart
 

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