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GBP/USD holds near 1.35 as traders watch UK GDP and US retail sales
Money markets fully price a Bank of England rate hike by November, with a second hike expected by April 2027, shaping near-term GBP sentiment.
GBP/USD was slightly lower around 1.3535 in early European trade on Thursday, with traders looking ahead to UK GDP data and US retail sales later in the day, according to FXStreet.
FXStreet reports that market participants have been leaning toward additional Bank of England rate hikes this year, in part due to expectations that higher oil prices could feed into inflation. Reuters data cited by FXStreet shows money markets fully pricing a BoE hike by the November meeting, with a second hike expected by April 2027.
On the technical front, FXStreet says the pair is trading above the 100-day simple moving average, and pressing toward the upper Bollinger band near 1.3534, which points to a stretched but still constructive uptrend. The 14-day RSI is around 65, suggesting bullish momentum is building but edging toward overbought conditions.
Downside levels highlighted by FXStreet include support near the 100-day SMA around 1.3400 and the Bollinger middle band near 1.3325, while a deeper move could revisit the lower Bollinger band near 1.3117. On the upside, FXStreet identifies the May 8 high at 1.3637, where a break could open the door to the 1.3700 psychological level.
Latest closeGBP/USD 1.354 ▲1.4%