GBP/USD retraces Wednesday’s gains meanders around 1.3100

• The GBP/USD extends its losses during the week, so far down 0.94%.
• Talks between Russia-Ukraine did not deliver market players’ expectations.
• GBP/USD Technical Outlook: Downward biased, though facing solid support at 1.3100.

British pound Wednesday’s gains are being pared, amid a shift in the financial market mood, on reports that Russia-Ukraine discussions in Turkey failed to fulfill market participants’ expectations. At 1.3101, the GBP/USD pair reflects a risk-off sentiment in the FX space.

Wednesday’s session witnessed an upbeat market mood amid the lack of news that confirmed some guarantees of a truce in the conflict between Russia-Ukraine, as fighting continued for sixteen straight days. Also, reports from Turkey noted that as both countries remain firm on their stances, the chances of ending the conflict remain slim.

Reflection of the aforementioned is global equity markets, recording losses. In the FX space, commodity-linked currencies advance, while safe-haven peers gain against the GBP and the EUR. In the meantime, the US Dollar Index, a measure of the greenback’s value vs. a basket of six peers, rises 0.42%, sitting at 98.37.

Data-wise, the US docket featured the Consumer Price Index (CPI) for February, which came at 7.9% y/y, while the so-called Core CPI that excludes volatile items rose by 6.4% y/y, both figures in line with expectations. “Last month’s CPI data does not fully capture the spike in oil prices following Russia’s invasion of Ukraine on February 24, when prices shot up more than 30%,” according to Reuters

GBP/USD Price Forecast: Technical outlook

GBP/USD overnight, the pair hovered around 1.3200, though the ECB meeting and geopolitical woes tilted sentiment negative, though the GBP/USD pushed through the daily pivot and stabilized around the 1.3100 mark.