The GBP/USD currently trades at 1.2615, recording mild losses.
Broad-spectrum technical indicators reveal a bullish hold for larger time-frames but the short term is somewhat negative.
The USD is getting traction thanks to positive labor market figures and markets pushing the Fed’s easing cycle to May.
On Thursday, the GBP/USD pair declined towards the 1.2615 level showing slight losses with upbeat US labor market figures benefiting the Greenback with Jobless claims from the week ending on February 3 coming in lower than expected. However, the Bank of England (BoE) holds a somewhat similar stance as the Federal Reserve (Fed) in delaying rate cuts so the losses may be limited.
Moreover, markets are predicting 100 bps rate cuts over the next 12 months, starting in June while investors are seeing higher 125 bps of easing in 2024 from the Fed indicating that the losses from the Pound may be limited. However, it will all come down to the incoming data as they will shape the expectations of the next decisions. Next in line, next Tuesday, the US will release January’s inflation figures while the UK will reveal key labor market figures which may likely set the pace for the pair for the next sessions
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