GBP/USD Forecast

The British pound has pulled back just a bit during the training session on Friday.

The GBP/USD currency pair has retreated from its highest level in seven months, with losses extending to the 1.2746 support level before settling around 1.2800 at the time of writing the analysis.

Weaker-than-expected UK wage and employment data boosted the chances of a June rate cut by the Bank of England and led to broad-based weakness in the pound.

The pound sterling is likely to hit its highest level in several months against the US dollar this week, supported by positive technicals.

The pound hit a seven-month high against the dollar on US wage slowdown, as the US dollar was sold off at the end of last week.

During yesterday's trading session, the GBP/USD pair rose by a third of a percent to reach 1.2744 after the US job quit rate fell.

The UK budget announcement and the testimony of the US Federal Reserve Chairman are factors that will have a strong impact on the performance of the GBP/USD currency pair during today's session.

The GBP/USD exchange rate traded widely last week, generally heading lower amid economic data releases from the United States.

The US dollar strength helped the bears move the GBP/USD currency pair to the psychological support level of 1.2600 and closed trading around 1.2650 last week.

In the middle of trading this week, the GBP/USD currency pair fell to the 1.2622 support level before stabilizing around 1.2665.

Amid limited trading, the GBP/USD currency pair is moving steadily around the 1.2658 level.

February 27, 2023, Technical analysis of the pound sterling against the dollar GBP/USD today

The Sterling price continues to show unique resilience against the recent gains of the US dollar against other major currencies.

Attempts to rebound higher for the GBP/USD currency pair still lack strong momentum to confirm a return to the upward path.

For four consecutive trading sessions, GBP/USD has been trying to rebound.