GBP/USD treads water, with bullish attempts limited below 1.2670

• The Pound finds support above 1.2580 but remains unable to extend its gains beyond 1.2670.
• Dismal data from the UK and hawkish comments from Fed members weigh on the pound.
• The dollar failed to capitalize on GDP numbers and US jobless claims, which exceeded expectations.

The Pound found support in the 1.2580 area early today, before bouncing higher, helped by a somewhat weaker US Dollar during Thursday's US session. However, the pair remains below 1.2665, which does not alter the overall downtrend.

The pair has moved within a 100 pip horizontal channel, consolidating losses after a drop from yearly highs near 1.2900 in early March.

Weak UK data and Fed's hawkish speech weigh on the Pound

UK macroeconomic numbers have weighed on the pound. Quarterly GDP revealed that the country entered recession in the final months of 2023 and inflation has cooled faster than expected, boosting hopes that the BoE could start cutting rates at the same time as the Fed. , if not before.

In the United States, Fed Governor Waller suggested that the Fed could keep interest rates higher for longer, providing a further boost to the US dollar. Investors are now watching the price index PCE Friday to reassess chances of a June rate cut

Macroeconomic data released Thursday revealed that the U.S. economy grew at a faster-than-expected pace in the fourth quarter, while weekly jobless claims declined, adding to evidence of the strength of the U.S. labor market. However, the impact on the US dollar has been minor.

GBP/USD Technical levels to watch