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24/07/25
16
GBP/USD Steady Near 1.3550 Ahead of Key Economic Data
The GBP/USD currency pair is trading near the 1.3550 level during the European trading session on Thursday. After posting gains in the first three sessions of the week, the pair pulled back slightly, with market participants remaining cautious ahead of key economic indicators and geopolitical developments.
The subdued market sentiment continues to support the U.S. dollar’s steady posture, as risk appetite remains limited amidst ongoing uncertainty. Notably, the upcoming release of the U.S. Manufacturing and Services PMI data for July is expected to influence the dollar’s trajectory. Should these PMI figures fall below the 50-mark, indicating contraction, the dollar could experience renewed selling pressure, potentially allowing the pound to regain ground. Conversely, if the data aligns with or surpasses expectations, the dollar may maintain its strength, capping significant gains for the pair.
Market participants are also awaiting developments from the political front, with recent reports confirming that the U.S. president is scheduled to meet with Federal Reserve officials. This visit adds to overall caution, as investors remain attentive to potential signals regarding monetary policy and the broader economic outlook, especially given the recent tensions between the administration and the Fed.
Technically, the pair remains supported near the 1.3550-1.3540 zone, where multiple moving averages and Fibonacci retracement levels converge. A sustained move below this area could open the door to further losses toward the 1.3500 and 1.3470 levels, while resistance exists at 1.3600 and 1.3630. These technical levels will be pivotal in guiding the next directional move for the currency pair.
The Pound Sterling remains sensitive to UK economic data, including the PMI figures that have shown a slowdown in private sector growth in July. The currency’s movement is heavily influenced by monetary policy expectations, with the Bank of England’s interest rate decisions driven by inflation targets and economic conditions. As the global landscape continues to evolve, currency traders will closely monitor both domestic and international developments that could impact the GBP/USD exchange rate.
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