GBP/USD sticks to modest gains, moves little post-US data

• Core PCE index rises unexpectedly to 1.2% in Q1 and lends some support to the USD.
• The final US GDP print matches original estimates of 3.1% annualized growth in Q1.
• Investors remain reluctant to place bullish bets amid persistent fears of no-deal Brexit.

The GBP/USD pair held on to its modest daily gains around the 1.2700 handle and had a rather muted reaction to the latest US macro releases.

With the recent trade optimism getting tempered ahead of the crucial Trump-Xi meeting at the G20 summit, the US Dollar failed to capitalize on its early up-move and turned out to be one of the key factors lending some support to the major.

However, the greenback downtick remained limited following the release of US economic data, showing that core PCE price index rose 1.2% during the first quarter of 2019 as compared to a stable reading of 1% and in line final Q1 GDP print.

Meanwhile, the pair moved little as investors still seemed reluctant to place any aggressive bullish bets amid persistent fears of a no-deal Brexit, given the favourite UK PM candidate Boris Johnson's commitment to leave the EU by October 31.

Technical levels to watch