GBP/USD remains far from weekly lows, recovers the 1.3400 level

• The US dollar weakens on Friday amid risk appetite.
• A quiet session for cable on Friday after sharp moves.
• GBP/USD is about to post the worst weekly results in months.

The GBP/USD it has been moving sideways near 1.3400 in the European session. The pair is trading modestly higher on Friday, holding on to Thursday night’s bounce, but in negative territory for the week.

After falling to 1.3272 on Thursday, GBP/USD rallied and peaked at 1.3440 on Friday, before pulling back to 1.3365. The mentioned level has become a key short-term support. The pair is hovering around 1.13400, about to post its worst weekly loss in months.

Deterioration in market sentiment weighed on the cable as the pound lagged other currencies in the rally. EUR/GBP hit a two-week high above 0.8400

week to come

Next week’s key economic report includes the US jobs report, while no major releases are expected in the UK and the focus will be on central bankers. “By the end of Wednesday, we will have heard from all nine members of the Bank of England committee in just over a week. That is interesting in itself, as there were virtually no comments from Bank officials in the December-February intersessional period,” ING analysts explained.

Regarding the UK outlook, ING analysts note that “pressure on household income from energy prices is likely to result in slower, perhaps negative, growth later this year. . We also expect some of the recent pressure on wages to ease now that post-reopening movement in the labor market slows. Therefore, we believe that the Bank will offer less increases than the markets expect this year”.

Despite a positive ending so far for financial markets, the advance of Russian troops in Ukraine and its consequences will remain a key factor.

Technical levels