During mid-European trading on Thursday, the GBP/USD pair falls to the bottom of its daily range, near the mid-1.2100s. The pair is below 1.2100 and close to a nearly three-week low that was hit on Wednesday. Bears are still looking for a strong break below the 200-day simple moving average (SMA), which is thought to be important.

The British Pound started falling after the final GDP report showed a 0.3% drop in the third quarter. Also, the annual growth rate was cut from 2.4% to 1.9%, making things worse for the UK economy.

It comes after last week’s dovish Bank of England (BoE) meeting and hurts the GBP/USD pair. Two of the nine BoE’s Monetary Policy Committee (MPC) members voted to keep interest rates the same. This suggests that the central bank is close to the end of the cycle of tightening policy.

Even though there are more people who want to sell US Dollars, the GBP/USD pair seems safe. Even though the Fed has said some hawkish things, investors think the US central bank will become more neutral, which will lower the yields on US Treasury bonds. Both of these things hurt the safe-haven dollar.

The fundamental picture isn’t clear, so it’s best to wait for selling to continue below the 200-day SMA before betting that GBP/USD will go up. On the economic agenda for the US right now are the final GDP report for Q3 and the Weekly Initial Jobless Claims report.

This, the yields on US bonds, and how the market feels about risk will all help the GBP/USD pair. The Fed’s favourite way to measure inflation, the US Core PCE Price Index, will still be the most important number on Friday.

Conclusion

Traders are waiting for the final US GDP report for Q3 to know what to do.