FX.co ★ GBP/USD

The GBP/USD pair has become a siren song for investors in recent sessions, extending its upward melody for a second consecutive day. As it hums around 1.2539 during Asian hours, a deeper dive into the forces orchestrating this harmonic rise is warranted. Fundamentals of the GBP/USD: The Federal Reserve's recent pronouncements and the unveiling of economic data set the stage for an intriguing narrative surrounding the movement of the GBP/USD pair. Fed Chair Jerome's tempered stance on interest rates has elicited varied reactions across the forex landscape, evoking a blend of relief and apprehension among investors. While the first quarter saw minimal strides in disinflation endeavours, Powell's assertion that additional rate hikes are improbable has left an indelible mark on market sentiments. The US Dollar Index (DXY), a barometer of the Greenback's value against major currencies, has remained relatively steady. Hovering near 105.20 in the early New York session, the index's stability contrasts with weak Q1 Unit Labor Cost data and consistent Initial Jobless Claims figures. Despite Unit Labor Costs growing at a slower pace than expected, weekly Jobless Claims have remained below estimates, reflecting a mixed economic landscape. 4-hour Time Frame Technical Outlook: Immediate throwback support at the 1.2444 level, followed by the 100-day Exponential Moving Average (EMA) at 1.2513 and the psychological barrier of 1.2500, could offer insights into short-term price movements. However, a breach below these levels might intensify selling pressure, potentially driving the pair towards the six-month low of 1.2300 and the lower boundary of the descending channel at 1.2241.

Currently positioned above the signal line but below the centerline, the MACD hints at a momentum shift that could confirm the weakening of the bearish bias once it breaches the centerline. Meanwhile, the RSI oscillates within the 40.00 to 60.00 range, signalling indecisiveness among market participants and potential shifts in sentiment.