GBP/USD traded near flat in early NorAm on Thursday, off Europe's overnight highs by 1.2431 but also up from U.S. data-related lows at 1.2361, remaining anchored near January's 7-month highs with the hint of an underlying bid that could propel cable higher.

U.S.
data failed to move the dial on Fed expectations, leaving focus to shift to Friday's personal income and consumption report for further insights on terminal rates and a potential pivot to cuts once inflation begins its descent toward the 2% target.

For now, GBP/USD retains its bid, near the rising 10-DMA at 1.2337, as the BoE is expected to keep rates higher than the Fed after 2023 to mitigate well-above target UK inflation.

Despite recent failures near 1.24 since Jan.
18, GBP/USD bulls appear unwilling to capitulate, keeping the 2023 high at 1.2448 in focus.
A soft data set on Friday and less-hawkish guidance from the Fed on Feb.
1 would be just the ticket to catapult GBP/USD higher and put the early June high by 1.2660 in focus.

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