The GBP/USD currency pair traded flat around 1.3415 during early European hours on Friday, with market participants adopting a cautious stance ahead of the release of the monthly UK Gross Domestic Product (GDP) figures [1]. The UK economy is anticipated to contract by 0.1% in April, following a 0.3% expansion in the previous reading [1]. Analysts suggest that a stronger-than-expected GDP report could support the British Pound (GBP) against the US Dollar (USD) in the near term, while ongoing uncertainty in the Middle East may bolster the safe-haven appeal of the USD, potentially acting as a headwind for GBP/USD [1].
From a technical perspective, GBP/USD maintains a mildly bearish near-term bias, trading below the 100-day simple moving average (SMA) and the Bollinger upper band, with the price also slightly under the Bollinger middle band [1]. The Relative Strength Index (RSI) stands at 48, indicating a neutral and consolidative market tone rather than strong selling pressure [1]. Key resistance levels are identified at the Bollinger middle band (1.3420), the 100-day SMA (1.3472), and the upper Bollinger band (1.3500), while notable support lies at the lower Bollinger band (1.3343) [1]. A break below this support could trigger a deeper retracement within the broader trading range [1].
Additionally, geopolitical developments were noted, as US forces reportedly intercepted and shot down two Iranian one-way attack drones near the Strait of Hormuz after Iran attempted to target commercial vessels, which could influence safe-haven flows into the USD [1].
CONCLUSION
GBP/USD remains range-bound below key technical resistance levels as traders await the UK GDP release. Market sentiment is neutral, with potential for movement depending on economic data and geopolitical developments. The pair's direction will likely be influenced by the GDP outcome and ongoing Middle East tensions.