GBP/USD ends the week with a loss of 0.16%. Softer UK inflation data prompts further BoE action, but in smaller steps. Hotter than expected US CPI and PPI figures for January justify Fed officials’ calls for a 50 basis point hike at upcoming meetings. GBP / USD recovers from recent February lows near 1.191 in the North American Central, supported by general weakness in the US dollar (USD). However, it remains below the key 200-day exponential moving average (EMA) at 1.2132, keeping the downtrend intact. At the time of writing, GBP/USD is trading hands above 1.2020. year, 0.30% above its initial price. GBP/USD EXPECTED AGGRESSIVE PRESSURE FROM FED VS BOE Data from both sides of the Atlantic kept GBP/USD under pressure, eventually falling below the 200-day EMA. The UK inflation report on Tuesday fueled speculation that the Bank of England (BoE) will not raise interest rates as aggressively as hoped. This, together with a weaker than expected consumer price index (CPI) in the United States in January, which exceeded the estimates of banking analysts, raised the likelihood of further tightening by the US Federal Reserve (Fed). , The final piece of the puzzle that lifted the US Treasury and the US dollar (USD) was January’s producer price index (PPI), with monthly data coming in higher than expected. That prompted unusual comments from two Federal Reserve (Fed) officials who said interest rates needed to stay higher longer, assuming they passed the 5.0 percent threshold. Another factor influencing investor reaction was the Philadelphia Fed Manufacturing Index, which fell, but input prices rose for the first time in 10 months, according to a survey of business executives. In the background, money market futures are weighing on the Federal Reserve. As a result, GBP / USD extended its losses on Thursday, falling 0.26%. However, as the New York session progresses, the British Pound (GBP) has gained traction against the US Dollar (USD), challenging the 100-day EMA. Technical Analysis of GBP / USD On the daily chart of the pair GBP / USD, the pair is lower, although it is recovering from a two-day decline. The main buyers found in the 1.1900 area, which triggered a rally to the day’s high of 1.2037, the 100-day EMA, which GBP / USD quickly rejected. If GBP/USD reaches a daily close above the 100-day EMA, the pair will accelerate to the confluence of the 200- and 20-day EMAs at 1.2132/35 each. On the other hand, a downside could occur if GBP/USD breaks below 1.191 and then 1.1900.