Following the release of U.S. inflation figures and the Bank of England’s monetary policy decision, the GBP/USD pair experienced a bounce back toward 1.2540 on Thursday. The pair found support from U.S. Personal Consumption Expenditure (PCE) data which came in softer than anticipated. However, the British currency’s gains were restrained by the BoE’s cautious approach toward rate cuts and disappointing UK Retail Sales numbers.
In North American trading hours on Friday, the Pound Sterling demonstrated a strong recovery. After hitting a fresh seven-month low at approximately 1.2470 against the U.S. Dollar, the GBP/USD managed a rebound. This upward movement for the Pound was largely attributed to a dip in the U.S. Dollar, following the release of the November U.S. Personal Consumption Expenditure Price Index report. This report highlighted that price pressures were rising, albeit at a moderate pace.
On the third consecutive day of losses, the GBP/USD pair lingered around 1.2490 during Friday’s Asian trading hours. Analyzing the daily chart, it becomes apparent that there is an ongoing bearish trend, as the trading pair remains constrained within a descending channel pattern.
