GBP/USD continues to churn near key technical levels

• GBP/USD churns near familiar territory as markets await developments.
• Cable caught an early lift on Tuesday, and shrugged off near-term risk fears.
• US data continues to point to a worsening economic outlook.

GBP/USD caught a small lift on Tuesday, bolstering Cable back into the high end of near-term consolidation and keeping bids pinned close to the 200-day Exponential Moving Average (EMA). US consumer sentiment dipped in February, adding more weight to economic slowdown concerns, and US President Donald Trump has reaffirmed his intent to impose stiff import taxes on his own citizens as a trade war threat against the US' closest trading partners.

Forex Today: Concerns over the US economy are picking up pace

Despite weakening consumer sentiment, driven largely by fears of President Trump's own tariff packages, Cable maintained a positive tilt on Tuesday. Despite a fresh go around the wheel of President Trump's trade war attempts, markets continue to believe that the US President will find an 11th hour reason to kick the can down the road on his own tariff threats. 

Wednesday is a relatively thin showing on the data calendar for both the US and UK sides of the docket, though markets are looking ahead to this week's US Gross Domestic Product (GDP) print, due on Thursday. Friday will close out the week with an update on US Personal Consumption Expenditure (PCE) inflation, a key print that investors are hoping will show a recent upturn in headline Consumer Price Index (CPI) inflation won't reach core inflation metrics. 

GBP/USD price forecast

Tuesday's bullish tilt in Cable trading leaves GBP/USD hamstrung near the 200-day EMA around 1.2680. Bulls have managed to keep the pair buoyed on the high end after a remarkable 4.7% recovery from mid-January's swing low near 1.2100, however a hard technical ceiling is priced in just south of thew 1.2700 handle.

GBP/USD daily