GBP / USD jumps off worse-than-expected US economic growth report, pierces 1.3800 level

• GBP / USD is approaching 1.3800 with a broad sell in US dollars across the board.
• The US economy slows down its growth rate, but inflation continues to rise.
• The Fed’s favorite inflation measure rose 4.5%, down from 6.1% in the prior quarter.

The pair GBP/USD it rises sharply during the American session, above 1.3800, trading at 1.3803 at the time of writing. Mixed macroeconomic data from the US triggers a sell off of dollars across the board. The US economy is growing slower than expected, contrary to rising inflation, and shows no signs of peaking. The stagflation narrative clouds the market again.

During the Asian and European session, the GBP / USD balanced near the lows of the day, around 1.3720, towards 1.3770, until stabilizing around the current levels after the announcement of the US GDP.

Third-quarter U.S. gross domestic product grew 2% below the estimated 2.7%

The absence of macroeconomic data from the UK was no excuse for the pound to rise, helped by market risk sentiment in financial markets. Additionally, it received a boost from US gross domestic product for the third quarter, which rose at a 2% pace, down from the 2.7% estimated by analysts, leaving economists guessing whether the announcement of Bond cuts would spur a sharper economic slowdown in the US.

In addition, the PCE, the Fed’s favorite inflation measure, remained high, increasing by% in the third quarter, after a 6.1% rebound in the previous three months.

However, not everything is negative outside the US Initial US Unemployment Claims rose to 281,000, below the 290,000 expected by analysts, falling for the third consecutive week. The job market is showing some signs of coming back to life, despite recent disappointments in the US Non-Farm Payrolls report.

Meanwhile, pending home sales in the US decreased 2.3% in September on a monthly basis, following the August reading that witnessed an increase of 8.31%, as reported by the National Association of Agents. US Realtors

That said, investors’ focus shifts to next week when the Federal Reserve and the Bank of England will unveil their monetary policy statements. The market is expecting a bond cut announcement from the Fed. As for the Bank of England, investors have calculated an 80% probability of a rate hike for the November meeting.

GBP / USD Price Forecast: Technical Outlook
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