The GBP/USD exchange rate fluctuated following a report indicating that the UK economy experienced a slowdown in the fourth quarter of the previous year. The asset maintained a narrow trading range following a report indicating that US inflation decreased in January, which heightens the likelihood of additional interest rate cuts by the Federal Reserve this year. The current trading value stands at 1.3655, reflecting a decrease from the year-to-date peak of 1.3870.
The GBP/USD exchange rate fluctuated following a report indicating that the UK economy experienced a slowdown in the fourth quarter of the previous year. The asset maintained a narrow trading range following a report indicating that US inflation decreased in January, which heightens the likelihood of additional interest rate cuts by the Federal Reserve this year. The current trading level stands at 1.3655, a decline from the year-to-date peak of 1.3870. The daily timeframe chart indicates that the GBP/USD pair has pulled back from the year-to-date peak of 1.3870 to the present level of 1.3655. The asset has declined past the significant support threshold at 1.3785, which was its peak in July of the previous year.
The pair has established an inverted head-and-shoulders pattern, which is a widely recognized bullish reversal indicator in technical analysis. The asset has consistently stayed above the 50-day and 100-day Exponential Moving Averages. Consequently, the pair is expected to recover in the upcoming days, possibly reaching the significant resistance level at 1.3785, which was its peak in September of the previous year.