GBP/USD off from day’s high at 1.3140 ahead of UK’s GDP and US Jobless Claims

• GBP/USD has attracted offers from 1.3144 as investors await UK’s GDP and US Initial Jobless Claims.
• The DXY is responding more to the economic data after the hangover of the Russia-Ukraine peace talks.
• US Initial Jobless claims are likely to underperform while UK’s GDP will remain flat.

The GBP/USD pair has witnessed a steep fall in the Asian session after tumbling below the consolidation, which placed in a narrow range of 1.3125-1.3144. The cable is indicating a negative double distribution trading session going forward as the asset has slipped lower after forming a range at open and is likely to auction back and forth again on the downside.

Pound bulls are facing barricades on the upside as investors are waiting for the UK’s quarterly and yearly Gross Domestic Product (GDP) numbers, which are due on Thursday. The quarterly GDP is likely to print at 1% similar to the prior figure. However, a preliminary estimate for the yearly GDP is 6.5%.

Meanwhile, the dollar index (DXY) is trying to catch a breath after tumbling below 98.00. The DXY initiated its downside journey on an upbeat market sentiment when the first face-to-face negotiations between Russia and Ukraine resulted in a constructive outcome. However, the responsive selling due to risk-on impulse turned into initiative selling on poor economic data. Weak US annualized GDP (Q4) numbers and ADP Employment Change on Wednesday closed all doors of optimism for the greenback.

Adding to that, investors are also worried about the yield curve inversion. In response to that market participants are keeping an eye on the 10-year and two-year US Treasury yields.

On Thursday, the US docket will report Initial Jobless Claims, which are likely to surge by 197k against the previous addition of 187k.