GBP/USD Exchange Rate Remains Flat Amid Mixed Signals From US Economy

Short Position

• Take Profit: 1.1840
• Stop Loss: 1.2225
• Timeline: 1-2 days

Long Position

• Buy Stop: 1.2125
• Take Profit: 1.2250
• Stop Loss: 1.1970

The GBP/USD exchange rate remained steady on Thursday as the American economy sent mixed signals. The Sterling is currently trading at 1.2080, slightly above this week’s low of 1.1970, and much lower than its year-to-date high of 1.2457. The focus has shifted towards the upcoming UK GDP data, as the GBP/USD price has declined due to the strong rebound of the US dollar index. The index had approached $100 earlier this month but jumped to $103 due to conflicting signals from the US economy.

The corporate earnings season has not been strong, with quarterly revenue growth declining by 5.3% in the fourth quarter, according to FactSet. This is the worst performance since the third quarter of 2020 when earnings plummeted by 5.7%. Despite this, many companies have continued to hire, with the number of job openings remaining above 10 million and the unemployment rate falling to 3.4%. The economic calendar is quiet on Thursday with no major data releases, but the latest UK GDP numbers for December will be published on Friday, with economists predicting a contraction of 0.3%. The outlook for the GBP/USD pair is bearish, and the next level to watch is 1.1840, with a stop-loss of 1.2200.

Forex Forecast

• BTC/USD: Bitcoin plunged to its lowest level since January 26.
• GBP/EUR: A resurgence in global risk appetite put pressure on the euro.
• USD/CAD: Canadian Dollar to resume its uptrend against the US Dollar.
• USD/CHF: The pair is likely to remain bullish as it resumes the uptrend.
• AUD/USD: The Aussie Dollar pair may see a downtrend with the consolidation.
• GBP/USD: The UK GDP numbers will trigger price moves for the pair.
• XAU/USD: The gold pair price moves down with the stronger USD.
• ETH/USD: The Ethereum pair will continue to downtrend with selling pressure.
• EUR/USD: US Dollar gains ground against EUR after Fed Williams comments.
• USD/JPY: USD/JPY dips in a tumultuous end-of-week turnover.

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