Anna 
In the European session on Thursday, GBP/USD faced bearish pressure, slipping slightly below the 1.2600 level. Key technical support is seen at the 200-day Simple Moving Average (SMA) at 1.2590.
The decline in GBP/USD is attributed to the resurgence of US Dollar (USD) strength during the latter part of the week. Fed Governor Christopher Waller’s remarks on Wednesday contributed to the dollar’s strength, stating that the central bank is not in a hurry to cut rates amidst persistent inflation concerns. Waller emphasized the importance of maintaining a restrictive stance to facilitate a sustainable return of inflation to the 2% target.
Additionally, the cautious market sentiment supported the USD’s strength early on Thursday, as US stock index futures traded marginally lower.
Later in the session, market participants will closely monitor the release of the final revision to the fourth-quarter Gross Domestic Product (GDP) growth reading by the US Bureau of Economic Analysis. The weekly Initial Jobless Claims data from the US Department of Labor is also anticipated, with expectations of a slight increase to 215K from the previous week’s 210K. A lower-than-expected reading could further bolster the USD.
With bond and stock markets in both the US and the UK closed on Friday for the Easter holiday, heightened market volatility is expected towards the end of the European session as investors make adjustments to their positions ahead of the first quarter’s final trading day.
