The GBP/USD pair has lost momentum and pared its weekly gains after reaching a two-month high due to mixed risk catalysts and anxiety surrounding top-tier UK/US data to be released on Friday. The pair has retreated from a seven-week high and is currently down 0.16% intraday as it flirts with the daily low near 1.2260.

Fears of a ballooning Fed balance sheet have renewed hawkish calls for the US central banks and have added to the global banking turmoil, weighing on sentiment and allowing the US Dollar to recover slightly from its seven-week low. The US Dollar Index (DXY) is currently trading near 102.60 after bouncing off a seven-week low the previous day, but the US 10-year and two-year Treasury bond yields remain depressed around 3.39% and 3.80%, respectively. Meanwhile, the S&P 500 Futures are struggling to mimic Wall Street’s positive moves, reflecting the overall mood in the market.

The GBPUSD pair is struggling to hold above the 1.2300 level and is showing a slight bearish bias as it approaches the support line of the intraday bullish channel. However, the EMA50 is expected to provide support to prevent further declines and maintain trading within this channel. The bullish trend is expected to continue with a target at 1.2440, but positive momentum is needed to achieve this. If the 1.2210 level is broken, the bullish wave will end and the price may experience some bearish correction before rising again. Today’s expected trading range is between support at 1.2210 and resistance at 1.2380.