The British pound (GBP) has been losing ground against the US dollar in recent days. The currency has been attempting to recover for more than a year.

According to experts, the unstable economic state of the United Kingdom is shown in a new Gfk Consumer Confidence release, which could show a rating of -18 this month, down from the previous month’s -19 index.

The GfK Group’s Consumer Confidence Index is a leading indicator of consumer confidence in economic activity. High consumer confidence promotes economic growth, whereas one that is low causes economic recession. A high score indicates that the GBP is bullish, whereas a low value indicates that the GBP is bearish.

The GBP/USD currency pair is currently trading around 1.3422, with two immediate support levels in place to keep the pair there while also providing a push forward.

During Asian trading hours, Russia launched an attack on Ukraine, causing a massive flight to safety in financial markets. Early Thursday, traditional safe-haven assets like gold, the yen, and the Swiss franc continued to gain momentum, with the US Dollar Index trading at its highest level in nearly a month above 96.50. The US Bureau of Economic Analysis will release its second estimate of fourth-quarter GDP figures later in the day.

Conclusion

Trading the GBP/USD currency pair may not be a wise idea. It is predicted to lose strength shortly. It can be a smart idea to trade for a long-term position.