The GBP/USD pair ticks lower to near 1.3230 during European trading hours on Thursday. The Cable edges lower as the US Dollar (USD) attracts some bids on meaningful progress in trade talks between the United States (US) and Japan.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies rebounds to near 99.50 from the three-year low of 99.00.

Investors see this as a sign that heightened global economic uncertainty, driven by imposition of hefty tariffs by US President Donald Trump, will ease amid growing confidence that Trump is leaned towards having bilateral deals that advancing a trade war will all nations.

Meanwhile, the Pound Sterling (GBP) is still outperforming its other peers even though soft inflation data and grim labor market outlook have paved the way for monetary policy easing by the Bank of England (BoE).

Inflation in the UK services sector, which is closely tracked by BoE officials, decelerated to 4.7% in March from 5% in February. UK employers are expected to offer less employment opportunities to offset the impact of increased contribution to social security schemes.

The Pound Sterling struggles to extend its winning streak against the US Dollar for the eighth trading day on Thursday and ticks lower to near 1.3230. However, the near-term outlook of the pair is upbeat as all short-to-long Exponential Moving Averages (EMAs) are sloping higher.

The 14-day Relative Strength Index (RSI) has shown a V-shape recovery from 40.00 to near 70.00, suggesting a strong bullish momentum.

A fresh upside move would appear if the pair will break above the April 16 high of 1.3292. Such a move will drive the major towards the September 25 high of 1.3430, followed by the round-level of 1.3500.

On the flip side, a downside move by the pair below the April 15 low of 1.3164 will take it to near the April 14 low of 1.3063 and the psychological level of 1.3000.

Source: FXStreet