GBP/USD holds steady near 1.2950 as traders brace for UK GDP data

• GBP/USD remains near 1.2950, cautiously, after US PPI data came slightly below expectations at 3.2% YoY.
• US jobless claims fell to 220K, highlighting labor market resilience despite mixed inflation outlook from recent tariffs.
• Traders anticipate UK GDP report Friday; expected slowdown to 0.1% MoM.

The Pound Sterling stayed firm at nearly 1.2950 against the Greenback on Thursday following the release of economic data from the United States (US). Inflation and jobs figures came in mixed but signaled that the economy remains solid. The GBP/USD trades at 1.2948, down 0.07%.

Mixed US economic signals keep Sterling rangebound; upcoming UK growth report eyed as next catalyst

Data from the US showed that prices paid by producers were mainly aligned with estimates. The US Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) in February came softer than the 3.3% expected at 3.2% YoY, down from the prior month’s 3.7%. Excluding volatile items, the so-called Core PPI increased by 3.4% YoY, beneath estimates of 3.5% and down from 3.6%.

Even though the latest US inflation reports were cooler than foreseen, tariffs imposed on imports to the US can spark a reacceleration of inflation, with economists estimating that prices will begin to rise in the months ahead.

Other data showed that Initial Jobless Claims for the week ending March 8 dipped from 222K to 220K, below forecasts of 225K.

Across the pond, traders are eyeing the release of Gross Domestic Product (GDP) figures on Friday. The 3-month rollover is estimated at 0.3%, up from 0.1% in the previous report. GDP in January is expected to dip from 0.4% to 0.1% MoM.

In the US, investors would digest the University of Michigan (UoM) Consumer Sentiment report for March.

GBP/USD Price Forecast: Technical outlook

The GBP/USD continues to trade sideways, unable to clear below/above the 1.2900 – 1.2950 range for the last two days. The Relative Strength Index (RSI) is near overbought territory yet almost flat. Therefore, traders are awaiting a fresh catalyst to drive the pair outside of the previously mentioned range.

A bullish continuation would happen once GBP/USD clears 1.2950, opening the door to challenge 1.3000. On the other hand, a drop beneath 1.2900 would clear the path to test the current week’s low of 1.2860, ahead of the 200-day Simple Moving Average (SMA) at 1.2791.