GBP/USD churns ahead of UK GDP growth check

• GBP/USD tested the low side on Wednesday, but remains steady near 1.2450.
• Cable markets are coiling ahead of the next round of UK GDP growth figures.
• US PPI inflation also in the barrel for Thursday after CPI inflation ticked higher.

GBP/USD is coiled around 1.2450, churning the charts near middling technical ground as Pound Sterling traders await the UK's latest Gross Domestic Product (GDP) growth figures. US Consumer Price Index (CPI) inflation accelerated in January, and markets will be watching Thursday's US Producer Price Index (PPI) for signs of further inflation factors to be passed onto consumers.

Preliminary UK GDP for 2024's fourth quarter is due on Thursday. Median market forecasts are expecting an uptick in annualized growth figures, with annualized Q4 GDP expected to clock in at 1.1% versus the previous 0.9%. Outside of the overall improvement, the fourth quarter is expected to lag, forecast to come in at a -0.1% contraction QoQ versus the previous flat print of 0.0%.

Forex Today: Further US inflation gauges should rule the sentiment

On the US side, PPI inflation will face renewed scrutiny on Thursday. US CPI accelerated in January, with headline CPI inflation rising to 3.0% YoY versus the expected hold at 2.9%. The near end of the tail bore the brunt of the increase, with MoM CPI coming in at 0.5%. Markets expected MoM headline CPI to come in at 0.3% versus the last print of 0.4%.

Core US PPI inflation will be the heavy-hitter on Thursday. Median market forecasts expect the print to slightly decline to 3.3% YoY from 3.5%. However, Wednesday's inflation uptick has investors on edge that US inflation is entrenching itself deeper in the US domestic economy.

GBP/USD price forecast

GBP/USD ran out of bullish gas on Wednesday, keeping bids strung along the midrange of a recent consolidation phase. Cable continues to churn just south of the 50-day Exponential Moving Average (EMA) near 1.2500, keeping price action under wraps as technical traders await signs of meaningful momentum in either direction.

GBP/USD daily chart