GBP/USD: Sterling Extends Consolidation, Zig Zags Near $1.2750 Ahead of US PCE Data

British pound has been trading in the range between $1.2750 to $1.2700 as trades eye the next big event – PCE data.

• The GBPUSD pair opened Thursday trading to the upside but kept floating in its weekslong range under the $1.2750 mark. The exchange rate added a modest 30 pips to start the day, bouncing from the $1.2700 level to notch a session high of $1.2736. What’s next for the pair?
• Forex traders anticipate tomorrow’s economic data out of the US. The personal consumption expenditures index, or the Federal Reserve’s preferred measure of inflation, is on deck for release Friday. Analysts expect a highly upbeat figure of 3.0% for December, down from 3.2% in November.
• Anywhere above that number might throw the GBPUSD into whipsaw trading as speculators try to bake in rising price pressures all over again. Further, a hot-to-warm report will complicate the Fed’s timeline of three interest rate cuts for 2024 already factored in by market participants.