The US Dollar experienced a downturn on Thursday following the release of the latest Gross Domestic Product figures. On the previous day, the dollar had shown remarkable strength, pushing the DXY US Dollar Index above the 105.00 threshold. However, this momentum faded as the market digested the new economic data. 

The rally in Treasury yields has been a key factor supporting the Greenback, driven by the widening rate differentials between the USD and other major currencies. This trend is critical for forex traders, who monitor these disparities to gauge potential currency movements. 

Initial jobless claims crucial weekly labor market update saw an uptick, increasing from the previous week's 216K to 219K, while continuing jobless claims rose slightly, though they came in below expectations, climbing from 1.787 million to 1.791 million. 

In terms of GDP, the second estimate for Q1 showed some downward adjustments: the price index remained unchanged at 3.1%, while headline GDP was revised down to 1.3% from an initial 1.6%. 

The EUR/USD daily chart reveals the pair found short-term support at the ascending trendline, marked by the dashed line, after its recent pullback. This support level has provided a temporary base around the 1.0800 mark, indicating buyers are stepping in to defend this level. The pair continues to battle for a breakout above the descending channel's resistance line and the 200-day moving average. A successful breach of these resistance levels could signal a bullish reversal, but for now, the euro remains confined within the channel, grappling with significant overhead resistance. The RSI's recent bounce from oversold territory hints at potential consolidation or a minor rebound, though the bearish trend remains intact unless a clear breakout is achieved:

Market speculation on Federal Reserve actions, reflected in interest rate futures, indicates a 52.5% likelihood of maintaining current rates in September. Conversely, there is a 42.1% chance of a 25 basis point rate cut. 

Assessing the broader economic landscape, recent reports add layers of complexity. The US Conference Board's Consumer Confidence Index showed a surprising uptick in May, rising to 102.00 from April's 97.5, reversing a three-month decline. This index, which includes the Present Situation Index and the Expectations Index, outperformed previous readings, suggesting a more optimistic outlook among consumers. Also, the preliminary S&P Global PMI report for May exceeded expectations, further indicating resilience in economic activity. 

The Pound Sterling found a support level just below 1.2700 against the USD during Thursday's New York session. Despite this, the GBP/USD pair's short-term direction remains clouded due to cautious sentiment ahead of the US core PCE data for April, due on Friday. 

Sterling's trajectory is also being influenced by speculation about potential interest rate cuts by the Bank of England. Financial markets, which initially expected rate cuts to begin in June, have now shifted their expectations to the August meeting, particularly after the UK's April CPI report indicated a slower-than-expected deceleration in price pressures. 

While the UK's headline CPI has decreased significantly, BoE officials remain concerned about the pace of service sector inflation, which is still running at nearly double the target rate needed to bring core inflation down to 2%. 

Much like EUR/USD, the bearish pullback in GBP/USD following its initial test of a key resistance line seems to be short-lived. Buyers are persistently challenging this resistance, anticipating that upcoming US data will serve as a favorable catalyst for a breakout. Should the data support a dovish shift from the Fed in future meetings, the scales could tilt in favor of a bullish move for GBP/USD: