GBP/USD contracts into near-term midrange ahead of key UK and US data

• GBP/USD gets rejected from 1.3300 once again as markets middle on Wednesday.
• Market momentum broadly took a break during the midweek, restraining volatility.
• UK GDP growth figures and US PPI inflation are next up on the docket for Thursday.

GBP/USD pared recent gains on Wednesday, trimming back to the low side of the 1.3300 handle and falling back into a choppy near-term consolidation phase as investors buckle down for Thursday's double feature of key data prints from both the United Kingdom (UK) and the United States (US).

First up on Thursday will be UK Gross Domestic Product (GDP) figures for the first quarter. UK Q1 GDP is expected to give a mixed print, with QoQ growth forecast to tick up, but annualized GDP to fall back slightly as a slump in domestic economic activity falls to the tail end of the curve. Q1 GDP is expected to rise to 0.6% QoQ from 0.1%, while Q1 GDP is forecast to ease to 1.2% YoY from 2024 Q4's 1.5%.

The American market session will follow up with US Producer Price Index (PPI) inflation. Core PPI inflation is expected to tick down to 3.1% YoY from 3.3%. Easing inflation pressures is a good thing, but markets are growing increasingly apprehensive of tariff impacts, which are set to begin leaking into headline economic data as soon as May.

GBP/USD price forecast

Thursday saw Cable bids continue to chalk in a new congestion phase, with GBP/USD poised for an extended battle near the 1.3300 handle. Price action has been in a choppy phase since slipping back from recent highs near 1.3450, but bearish momentum has been struggling to drag bids back down to the 50-day Exponential Moving Average (EMA) near 1.3100.

GBP/USD daily chart