GBP/USD Price Analysis: Consolidates near 1.2800 ahead of UK GDP, bulls have the upper hand

• GBP/USD lacks any follow-through buying and oscillates in a range on Wednesday.
• Delayed BoE rate cut bets underpin the GBP and lend support amid a softer USD.
• Bulls, however, refrain from placing aggressive bets ahead of the UK monthly GDP.

The GBP/USD pair struggles to capitalize on the previous day's late rebound from levels below mid-1.2700s, or the weekly low and oscillates in a narrow trading band during the Asian session on Wednesday. Spot prices currently trade just below the 1.2800 mark, unchanged for the day as traders opt to wait on the sidelines ahead of important macro releases from the UK, including the monthly GDP print.

In the meantime, bets that the Federal Reserve (Fed) will start cutting interest rates in June, despite the warmer US consumer inflation, along with a generally positive risk tone, keep the US Dollar (USD) bulls on the defensive. Adding to this, expectations that the Bank of England (BoE) might keep interest rates higher for longer underpin the British Pound (GBP) and lend some support to the GBP/USD pair.

From a technical perspective, spot prices showed some resilience and bounced from a strong resistance breakpoint around the 1.2750 region on Tuesday. The said area should now act as a key pivotal point, which if broken decisively might prompt some technical selling and drag the GBP/USD pair below the 1.2700 mark, towards testing the 50-day Simple Moving Average (SMA) support near the 1.2680 zone.

A convincing break below the latter might expose the 1.2600 confluence, comprising the 100- and the very important 200-day SMAs. The subsequent downfall has the potential to drag the GBP/USD pair towards the 1.2520-1.2515 region, or the YTD low touched in February.

On the flip side, the 1.2850-1.2855 region is likely to act as an immediate hurdle, above which spot prices could climb back to the 1.2900 neighbourhood, or the highest level in over eight months touched last Friday. Given that oscillators on the daily chart are holding in the positive territory and are still far from being in the overbought zone, some follow-through buying will be seen as a fresh trigger for bullish traders.

The GBP/USD pair might then accelerate the positive momentum towards the next relevant hurdle near the 1.2940-1.2945 region before aiming to reclaim the 1.3000 psychological mark for the first time since July 2023.

GBP/USD daily chart