- GBP/USD extends its losses for the week, down 0.94% so far.
- The talks between Russia and Ukraine did not meet the expectations of market participants.
- GBP/USD Technical Outlook: Bias to the downside, though facing strong support at 1.3100.
GBP’s gains on Wednesday are tapering off, amid a change in financial market mood, due to reports that Russian-Ukrainian discussions in Turkey fell short of market participants’ expectations. At 1.3101, the pair GBP/USD reflects a risk-off sentiment in the FX space.
Wednesday’s session witnessed an upbeat market mood amid a lack of news confirming any assurances of a truce in the conflict between Russia and Ukraine as the fighting continued for sixteen straight days. Furthermore, Turkey’s reports noted that as both countries stand firm on their positions, the chances of ending the conflict remain slim.
A reflection of the above are the global equity markets, registering losses. In the forex space, commodity-linked currencies advanced while safe-haven pairs gained against the British pound and the euro. Meanwhile, the US Dollar Index, a measure of the dollar’s value against a basket of six pairs, is up 0.42% to settle at 98.37.
Regarding the data, the US calendar presented the Consumer Price Index (CPI) for February, which stood at 7.9%, while the so-called core CPI that excludes volatile elements increased by 6.4% year-on-year, both figures online. with expectations “Last month’s CPI data does not fully capture the surge in oil prices following the Russian invasion of Ukraine on February 24, when prices soared more than 30%,” according to Reuters.
GBP/USD Price Forecast: Technical Outlook
GBP/USD overnight, the pair hovered around 1.3200, although the ECB meeting and geopolitical issues tilted sentiment negative, although GBP/USD broke through the daily pivot and stabilized around 1.3100.
Additional technical levels
Source: Fx Street
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