The pound is heading towards $1.30

LONDON — The pound was approaching 1.30 against the dollar on Thursday, with modest gains in early morning trading as investors wait for the UK’s first quarter GDP report.

Sterling passed above the psychologically significant $US1.30 level last week, but has struggled against the greenback since then, largely thanks to dollar strength.

The pound is up 0.11% from the open, and as of 8.20 a.m. BST (3.20 a.m. ET) is trading at $US1.2984:

FXTM research analyst Lukman Otunuga says in a note:

“Sterling was passive this week with prices hovering around 1.3000 as investors redirected their focus elsewhere. A vulnerable dollar did little to elevate prices higher and, as such, continues to highlight how the upside remains limited by Brexit anxieties.

“Participants will direct their attention towards the second estimate for the first quarter GDP report this morning which could be a non-event if estimates are unchanged. With uncertainty over Brexit still gripping sterling, downside risks remain present. From a technical standpoint, the GBP/USD could be displaying early signs of exhaustion with weakness below 1.2900 opening a path to 1.2775.”

More from Thomas Colson:

NOW WATCH: SCOTT GALLOWAY: I believe every time Amazon reports a profit a manager gets yelled at

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at