The GBP/USD pair is showing an upward movement around 1.3635, breaking a two-day decline during the early European session on Thursday. The initial estimate of the UK’s Gross Domestic Product for the fourth quarter is set to attract significant attention later on Thursday. The UK economy is projected to expand by 0.2% quarter-on-quarter in the fourth quarter, compared to a growth of 0.1% in the first quarter. A stronger-than-expected outcome could enhance the Cable’s position against the US Dollar. GBP/USD shows resilience near 1.3635 during the early European session on Thursday. Market participants are anticipating the initial assessment of the UK GDP report for the fourth quarter, scheduled for release on Thursday. The optimistic perspective for the pair continues to hold as it stays above the significant 100-day EMA. The initial support level is identified at 1.3618; the first resistance level to monitor is 1.3713.
Conversely, traders reduced their expectations for a March Federal Reserve rate cut following the positive US Nonfarm Payrolls report. This could potentially limit the upward movement for the major pair. The US NFP increased by 130,000 in January, surpassing the estimates of 70,000, as reported by the Bureau of Labor Statistics on Wednesday. The Unemployment Rate decreased to 4.3% in January, down from 4.4% in December, which is below the market consensus of 4.4%.
In the daily chart, GBP/USD continues to trade above the ascending 100‑EMA at 1.3447, maintaining a positive outlook. The average is showing signs of strengthening, which supports demand during pullbacks. The RSI at 53.6 is trending upward and remains above 50, indicating a strengthening momentum. The Bollinger midline at 1.3618 serves as a support level for the pullback, whereas the February 11 high of 1.3713 acts as a resistance for near-term gains. The upper band at 1.3873 serves as the additional upside filter to monitor.
Bollinger Bands have expanded, with the price positioned slightly above the midpoint, suggesting an increase in upward momentum amid rising volatility. Should buyers sustain their dominance, a continuation toward the upper band may ensue. Conversely, a daily close below the lower band would undermine the current structure and potentially lead to further declines.