Technical Analysis

GBP/USD Price Analysis – Feb 05, 2025

By LHFX Technical Analysis
Feb 5, 2025
Gbpusd

Daily Price Outlook

During the European trading session, the GBP/USD currency pair has maintained its upward trend and remained well bid around 1.2544, hitting the intra-day high of 1.2544. However, the reason for its upward trend could be attributed to the US Dollar losing some of its strength.

The Dollar weakened after US President Donald Trump decided to delay tariffs on Canada and Mexico. This move helped reduce some of the market’s worries about global trade tensions, making the Dollar less attractive to investors.

As a result, the British Pound gained against the US Dollar. Although the Pound is underperforming against most other currencies, it was able to find support against the Dollar due to the Dollar’s decline.

In addition to this, traders are cautious ahead of the Bank of England's (BoE) decision, which is expected tomorrow. This has added some uncertainty to the market, and investors are closely watching how the BoE will adjust its policy.

GBP Under Pressure Ahead of Bank of England Rate Cut Decision

On the GBP front, the Pound (GBP) has been underperforming compared to most of its major peers, except the US Dollar (USD), as investors become more cautious ahead of the Bank of England’s (BoE) decision on Thursday.

The BoE is expected to cut its key borrowing rate by 25 basis points (bps), lowering it to 4.50%. This would be the third rate cut in the current cycle. However, one BoE member, Catherine Mann, who is known for her hawkish views, might vote to keep the rate at 4.75%.

The main reason for this expected rate cut is that inflation in the UK has slowed down more than expected, especially in the services sector, which is closely watched by the BoE. In December, inflation in services rose by 4.4%, down from 5% in November.

Additionally, December's Retail Sales data showed a significant drop, which has further convinced traders that the BoE will ease its policy to help the economy.

Looking ahead, market participants are betting that the BoE may continue cutting rates by around 56 bps in total throughout the year, beyond this Thursday’s decision.

As a result, the GBP/USD pair is under pressure, as the anticipated rate cuts reduce the appeal of the Pound, while the US Dollar remains strong, holding its ground in the market.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair is trading at $1.24667, down 0.09%, reflecting a cautious bearish sentiment as it struggles below the pivot point at $1.24915. The pair’s inability to maintain momentum above this level suggests sustained selling pressure.

Immediate resistance is noted at $1.25229, with additional barriers at $1.25629 and $1.26212. A break above these resistance levels could signal a potential shift toward a bullish outlook.

On the downside, immediate support is seen at $1.24281. A decisive move below this threshold could accelerate bearish momentum, targeting $1.23780 and potentially $1.23236. The 50-day Exponential Moving Average (EMA) at $1.24131 acts as a dynamic support, reinforcing the bearish bias if breached.

Technical indicators suggest a weak bullish recovery, with sellers maintaining control unless the pair closes firmly above the pivot point of $1.24915. The consistent formation of lower highs and lower lows on the 4-hour chart indicates bearish dominance.

Traders should closely monitor price action around $1.24901. A sustained break below this level offers a selling opportunity, with profit targets near $1.24275. A stop-loss above $1.25232 is recommended to manage potential reversals effectively.

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GBP/USD

Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LHFX Technical Analysis
Feb 5, 2025
Gbpusd

Daily Price Outlook

- Bearish Sentiment: GBP/USD struggles below $1.24915, maintaining downward pressure.

- Key Support Levels: Immediate support at $1.24281; break below may target $1.23780.

- Resistance Zones: Watch resistance at $1.25229 and $1.25629, capping potential rebounds.

The GBP/USD pair is trading at $1.24667, down 0.09%, reflecting a cautious bearish sentiment as it struggles below the pivot point at $1.24915. The pair’s inability to maintain momentum above this level suggests sustained selling pressure.

Immediate resistance is noted at $1.25229, with additional barriers at $1.25629 and $1.26212. A break above these resistance levels could signal a potential shift toward a bullish outlook.

On the downside, immediate support is seen at $1.24281. A decisive move below this threshold could accelerate bearish momentum, targeting $1.23780 and potentially $1.23236. The 50-day Exponential Moving Average (EMA) at $1.24131 acts as a dynamic support, reinforcing the bearish bias if breached.

Technical indicators suggest a weak bullish recovery, with sellers maintaining control unless the pair closes firmly above the pivot point of $1.24915. The consistent formation of lower highs and lower lows on the 4-hour chart indicates bearish dominance.

Traders should closely monitor price action around $1.24901. A sustained break below this level offers a selling opportunity, with profit targets near $1.24275. A stop-loss above $1.25232 is recommended to manage potential reversals effectively.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.24901

Take Profit – 1.24275

Stop Loss – 1.25232

Risk to Reward – 1:1.8

Profit & Loss Per Standard Lot = +$626/ -$331

Profit & Loss Per Mini Lot = +$62/ -$33

GBP/USD

Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LHFX Technical Analysis
Feb 3, 2025
Gbpusd

Daily Price Outlook

- Bearish bias below $1.23069, with downside targets at $1.22281 and $1.21595.

- Resistance at $1.23877 could cap recovery attempts unless buyers gain strong momentum.

- 50-EMA at $1.24076 reinforces bearish pressure, acting as a key dynamic resistance.

The GBP/USD pair is trading at $1.22693, down 0.97%, reflecting sustained bearish momentum as the pair struggles below key technical levels.

The price is currently hovering beneath the pivot point at $1.23076, signaling a potential continuation of the downtrend.

Notably, the 50-day Exponential Moving Average (EMA) at $1.24076 adds further pressure from above, reinforcing the bearish outlook unless a strong reversal occurs.

If sellers maintain control, immediate support is seen at $1.22284. A break below this level could accelerate declines toward $1.21595, with $1.21054 as the next critical support zone.

Conversely, if the pair manages to recover above the pivot point, initial resistance is expected at $1.23877. Surpassing this could open the door for further gains toward $1.24541 and $1.25225, though such moves may face strong selling interest given the broader bearish bias.

The technical structure favors a bearish outlook below $1.23069, with a recommended sell entry at this level. The take-profit target is set at $1.22281 to capture potential downside momentum, while a stop-loss at $1.23565 helps manage risk in case of unexpected reversals. A sustained move above the 50-EMA would be required to shift the bias towards a more bullish scenario.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.23069

Take Profit – 1.22281

Stop Loss – 1.23565

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$788/ -$496

Profit & Loss Per Mini Lot = +$78/ -$49

GBP/USD

Technical Analysis

GBP/USD Price Analysis – Feb 03, 2025

By LHFX Technical Analysis
Feb 3, 2025
Gbpusd

Daily Price Outlook

During the first half of the European session on Monday, the GBP/USD currency pair continued its downward trend, dropping to around the 1.2293 level. This decline can be attributed to market concerns triggered by the imposition of tariffs on Canada, Mexico, and China by US President Donald Trump, which spooked global financial markets and prompted investors to seek safer assets.

Moreover, the British Pound showed a mixed performance against its major peers as investors shifted their focus toward the upcoming Bank of England (BoE) monetary policy decision, set to be announced on Thursday.

GBP/USD Focuses on Bank of England's Expected Rate Cut Amid Slowing Inflation and Weak Labor Demand

The Bank of England (BoE) is expected to cut interest rates by 0.25% to 4.50%. Most of the BoE's policymakers (seven out of nine) are likely to agree with this cut. However, two members, including Catherine Mann, who tends to be more cautious, may vote to keep rates the same. This decision comes as the UK shows signs of slowing inflation and weak labor demand, making the BoE consider easing its policy.

The expectation for a rate cut is based on slowing inflation and weak job demand in the UK. The UK's core Consumer Price Index (CPI), which leaves out things like food and energy, dropped to 3.2% in December. Additionally, the labor market saw a small increase of 35,000 new jobs in the three months up to November.

Therefore, the anticipated rate cut by the BoE, driven by slowing inflation and weak job demand, could weaken the GBP, leading to potential downward pressure on the GBP/USD pair in the short term.

US Dollar Strengthens Amid Tariff Concerns and Focus on Labor Market Data

On the US front, the broad-based US Dollar surged as global market sentiment worsened, particularly following US President Donald Trump's decision to impose tariffs on Canada, Mexico, and China.

This move spooked investors, leading them to flock to the safety of the US Dollar. The US Dollar Index (DXY), which measures the Greenback’s strength against six major currencies, climbed above 109.50, its highest level in over two weeks.

Trump’s tariffs included 25% on Canada and Mexico, and 10% on China, citing concerns over illegal immigration and fentanyl. While he also threatened tariffs on Europe, he softened his stance toward the UK, noting a potential deal with Prime Minister Keir Starmer.

Investors are closely watching this week's labor market data to get a sense of how long the Federal Reserve might keep interest rates steady. After last Wednesday’s meeting, Fed Chair Jerome Powell mentioned they’d only change rates if inflation improves or the job market weakens.

On Monday, traders are paying attention to the ISM Manufacturing PMI and the revised S&P Global Manufacturing PMI. The ISM PMI is expected to rise slightly to 49.5, but it’s still below the 50.0 mark, which signals the economy could be slowing down.

Therefore, the US Dollar's strength, driven by global market uncertainty and Trump's tariff decisions, could put pressure on the GBP/USD pair, potentially causing the pound to weaken against the dollar.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair is trading at $1.22693, down 0.97%, reflecting sustained bearish momentum as the pair struggles below key technical levels.

The price is currently hovering beneath the pivot point at $1.23076, signaling a potential continuation of the downtrend.

Notably, the 50-day Exponential Moving Average (EMA) at $1.24076 adds further pressure from above, reinforcing the bearish outlook unless a strong reversal occurs.

If sellers maintain control, immediate support is seen at $1.22284. A break below this level could accelerate declines toward $1.21595, with $1.21054 as the next critical support zone.

Conversely, if the pair manages to recover above the pivot point, initial resistance is expected at $1.23877. Surpassing this could open the door for further gains toward $1.24541 and $1.25225, though such moves may face strong selling interest given the broader bearish bias.

The technical structure favors a bearish outlook below $1.23069, with a recommended sell entry at this level. The take-profit target is set at $1.22281 to capture potential downside momentum, while a stop-loss at $1.23565 helps manage risk in case of unexpected reversals. A sustained move above the 50-EMA would be required to shift the bias towards a more bullish scenario.

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Technical Analysis

GBP/USD Price Analysis – Jan 29, 2025

By LHFX Technical Analysis
Jan 29, 2025
Gbpusd

Daily Price Outlook

During the European trading session, the GBP/USD currency pair faced slight decline, edged lower around 1.2430. This drop came as the US Dollar (USD) regained some strength ahead of the Federal Reserve’s (Fed) upcoming monetary policy decision, which is set to be announced at 19:00 GMT.

Despite this dip against the US Dollar, the Pound (GBP) performed well against most other major currencies. The Pound's positive movement came after UK Prime Minister Keir Starmer spoke about improving trade relations with the United States.

Despite the GBP/USD pair faced some pressure from the US Dollar’s recovery, the overall sentiment for the Pound remained upbeat, especially with signs of stronger economic cooperation between the UK and the US. The market will be keeping a close eye on the Fed's decision later today for further direction.

GBP Strengthens Amid Optimism Over UK-US Trade and Economic Growth Prospects

On the GBP front, the Pound Sterling (GBP) has been gaining traction against most major currencies, except safe-haven ones like the US Dollar (USD) and Japanese Yen (JPY). This rise comes after UK Prime Minister Keir Starmer made optimistic comments about improving trade relations with the United States.

In an interview with Bloomberg, he mentioned that the UK already has a “huge amount of trade” with the US, and there’s potential for even “better trading relations” in the future. His words helped ease concerns that the UK might face heavy tariff threats from former President Trump.

Starmer’s positive outlook on trade and the UK economy has also sparked some optimism. He stated that the government’s main priority is economic “growth” and that the UK economy is on the verge of a “turnaround.”

Investors are now looking for further signs of economic recovery, especially after Chancellor of the Exchequer Rachel Reeves' speech in Oxfordshire on Wednesday. She is expected to announce plans for the Oxford-Cambridge Growth Corridor, which could potentially add £78 billion to the UK economy by 2035.

Looking ahead, traders are also anticipating changes in monetary policy. Many believe the Bank of England (BoE) will cut interest rates by 25 basis points to 4.5% at its upcoming meeting on February 6.

This expectation comes after slower-than-expected UK inflation and a surprising drop in Retail Sales in December. Additionally, labor demand has cooled due to increased National Insurance contributions for employers, which may further support the case for rate cuts.

US Dollar Strengthens Ahead of Fed Decision and Trade Policy Developments

On the US front, the broad-based US Dollar is gaining strength ahead of the Federal Reserve’s (Fed) upcoming monetary policy decision, which will be announced at 19:00 GMT. The US Dollar Index (DXY), which tracks the USD against six major currencies, is bouncing back toward the 108.00 level.

Traders expect the Fed to pause its recent policy easing and keep interest rates unchanged at 4.25%-4.50%, based on the CME FedWatch tool.

In addition, investors are keeping an eye on President Trump’s trade policies. White House Press Secretary Karoline Leavitt confirmed that the 25% tariffs on Canada and Mexico, effective February 1, are still in place, and Trump is considering additional tariffs on China.

He also plans to impose tariffs on pharmaceuticals, advanced chips, and steel to boost US manufacturing. Therefore, the US Dollar’s strength, driven by Fed expectations and trade policies, is likely to weigh on the GBP/USD pair, pushing the GBP lower as USD gains traction against it. (edited)

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair is extending its gains, trading at $1.24555, up 0.13%, as it tests key technical levels. The pair remains above the pivot point at $1.24239, signaling a potential bullish continuation.

The 50-day EMA at $1.24238 serves as near-term support, reinforcing the upward trend. If buyers maintain control, the next resistance levels stand at $1.25064, followed by $1.25637 and $1.26131.

A sustained move above $1.24232 supports further gains, with a breakout above $1.25064 likely triggering additional upside momentum.

However, failure to hold above the pivot could expose the pair to immediate support at $1.23777, with deeper pullbacks toward $1.23016 and $1.22461 if selling pressure intensifies.

Macroeconomic factors, including U.S. economic data and Bank of England policy expectations, will play a crucial role in shaping the near-term direction.

If the U.S. dollar weakens on dovish Federal Reserve signals, GBP/USD could continue climbing. Conversely, stronger U.S. data could stall the rally.

Traders may consider a buy position above $1.24232, targeting $1.25069, with a stop-loss at $1.23777 to manage downside risks.

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Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LHFX Technical Analysis
Jan 29, 2025
Gbpusd

Daily Price Outlook

- GBP/USD holds above the $1.24239 pivot, supporting a bullish outlook.

- Immediate resistance at $1.25064; a breakout could push the pair toward $1.25637.

- 50-day EMA at $1.24238 provides key support, keeping buyers in control.

The GBP/USD pair is extending its gains, trading at $1.24555, up 0.13%, as it tests key technical levels. The pair remains above the pivot point at $1.24239, signaling a potential bullish continuation.

The 50-day EMA at $1.24238 serves as near-term support, reinforcing the upward trend. If buyers maintain control, the next resistance levels stand at $1.25064, followed by $1.25637 and $1.26131.

A sustained move above $1.24232 supports further gains, with a breakout above $1.25064 likely triggering additional upside momentum.

However, failure to hold above the pivot could expose the pair to immediate support at $1.23777, with deeper pullbacks toward $1.23016 and $1.22461 if selling pressure intensifies.

Macroeconomic factors, including U.S. economic data and Bank of England policy expectations, will play a crucial role in shaping the near-term direction.

If the U.S. dollar weakens on dovish Federal Reserve signals, GBP/USD could continue climbing. Conversely, stronger U.S. data could stall the rally.

Traders may consider a buy position above $1.24232, targeting $1.25069, with a stop-loss at $1.23777 to manage downside risks.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Buy Above 1.24232

Take Profit – 1.25069

Stop Loss – 1.23777

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$837/ -$455

Profit & Loss Per Mini Lot = +$83/ -$45

GBP/USD

Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LHFX Technical Analysis
Jan 27, 2025
Gbpusd

Daily Price Outlook

- GBP/USD remains under pressure below the pivot point of $1.24065, signaling a bearish outlook.

- A break below $1.23440 could trigger further losses toward $1.22921.

- The 50 EMA at $1.23536 serves as a critical support level for potential reversals.

The GBP/USD pair is facing downward pressure, currently trading at $1.24427, reflecting a 0.29% decline in today’s session. The pair struggles to maintain momentum above the key pivot level of $1.24065, which serves as a crucial support zone.

A sustained break below this level could expose the currency pair to further downside risks, with immediate support at $1.23440, followed by deeper levels at $1.22921 and $1.22280.

On the upside, immediate resistance is seen at $1.25064, and a decisive breakout above this level could pave the way for further gains toward $1.25637 and $1.26131.

However, market sentiment remains cautious as traders weigh economic data releases from both the UK and the US, including inflation figures and central bank guidance, which may influence the pair’s trajectory.

The 50-day EMA, currently positioned at $1.23536, offers dynamic support and could serve as a critical inflection point for traders assessing the broader trend. If GBP/USD remains below the pivot level, selling pressure is likely to persist.

A bearish breakdown below $1.24065 could confirm further downside momentum, whereas a move above $1.24501 may indicate a potential bullish reversal.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.24501

Take Profit – 1.24065

Stop Loss – 1.24812

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$436/ -$311

Profit & Loss Per Mini Lot = +$43/ -$31

GBP/USD

Technical Analysis

GBP/USD Price Analysis – Jan 27, 2025

By LHFX Technical Analysis
Jan 27, 2025
Gbpusd

Daily Price Outlook

During the European trading session, the GBP/USD pair maintained its upward momentum, staying well-supported around the 1.2502 level and reaching an intraday high of 1.2508.

Despite growing concerns about stagflation risks in the UK economy, the British Pound showed resilience.

However, the Pound managed to recover its losses and climb back toward the 1.2500 mark against the US Dollar.

This recovery came as the US Dollar weakened following news that investors were digesting fears of potential 25% tariffs on Columbia imposed by former US President Donald Trump. This combination of factors helped support the GBP/USD pair during the European session.

US Dollar Weakens Amid Tariff Threats and Fed's Upcoming Decision, Boosting GBP/USD

On the US front, the broad-based US Dollar (USD) retreated, helping the GBP/USD pair recover its losses and climb back to near the 1.2500 level.

The Greenback weakened after investors digested news that former President Donald Trump had threatened to impose 25% tariffs on Columbia.

Trump made this threat over Columbia’s refusal to allow military flights carrying illegal immigrants, but he later decided to pause the tariffs after Columbia agreed to his terms.

As a result, the US Dollar fell back to around 107.50 from an intraday high of 107.80. This drop showed that investors no longer saw the Greenback as a safe haven, as they expected Trump’s tariffs to be used primarily as negotiation tactics.

ING analysts noted that there’s growing sentiment that Trump might not follow through on many of his protectionist threats, especially if concessions are made on trade.

Looking ahead, the main factor for the US Dollar this week will be the Federal Reserve’s (Fed) monetary policy decision, set to be announced on Wednesday. The Fed is likely to keep interest rates unchanged in the range of 4.25%-4.50%.

GBP Rises Amid Concerns of Stagflation and Growing Economic Weakness in the UK

On the GBP front, the British Pound is rising despite concerns over the growing risks of stagflation in the UK economy.

On the data front, the latest S&P Global UK Purchasing Managers Index (PMI) report for January showed that employment dropped for the fourth consecutive month, and cost pressures in the private sector are increasing.

This situation is likely to lead to higher inflation as businesses pass on rising input costs to customers.

Meanwhile, the slowdown in labor demand is partly due to the announcement from Chancellor of the Exchequer Rachel Reeves, who revealed plans to increase employers’ contributions to National Insurance.

As a result, businesses are cutting back on hiring, facing falling sales, and dealing with uncertainty about the future.

These signs of economic weakness are adding to worries about stagflation, with inflationary pressures returning. Chris Williamson, Chief Business Economist at S&P Global, noted that business conditions in 2025 are not looking promising.

Therefore, the UK’s worsening job market and rising inflation pressures are expected to make things more challenging for the Bank of England (BoE), which will announce its monetary policy decision on February 6.

Many traders are betting on a 25 basis point (bps) rate cut to 4.5%, which is affecting yields on UK 30-year gilts, causing them to drop by over 1% to around 5.15%.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair is facing downward pressure, currently trading at $1.24427, reflecting a 0.29% decline in today’s session. The pair struggles to maintain momentum above the key pivot level of $1.24065, which serves as a crucial support zone.

A sustained break below this level could expose the currency pair to further downside risks, with immediate support at $1.23440, followed by deeper levels at $1.22921 and $1.22280.

On the upside, immediate resistance is seen at $1.25064, and a decisive breakout above this level could pave the way for further gains toward $1.25637 and $1.26131.

However, market sentiment remains cautious as traders weigh economic data releases from both the UK and the US, including inflation figures and central bank guidance, which may influence the pair’s trajectory.

The 50-day EMA, currently positioned at $1.23536, offers dynamic support and could serve as a critical inflection point for traders assessing the broader trend. If GBP/USD remains below the pivot level, selling pressure is likely to persist.

A bearish breakdown below $1.24065 could confirm further downside momentum, whereas a move above $1.24501 may indicate a potential bullish reversal.

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Technical Analysis

GBP/USD Price Analysis – Jan 22, 2025

By LHFX Technical Analysis
Jan 22, 2025
Gbpusd

Daily Price Outlook

During the European trading session, the GBP/USD currency pair struggled to halt its downward movement, remaining under pressure around the 1.2348 level. It reached an intra-day low of 1.2312, continuing its decline.

The primary factor behind this drop is the recovery of the US Dollar, as reflected in the slight rise of the US Dollar Index (DXY), which tracks the value of the Greenback against six major currencies.

This shift helped the USD gain some strength after hitting a two-week low of 107.90 earlier in the week. Market sentiment is also being affected by uncertainty surrounding former President Trump's tariff plans, which have led to mixed reactions in the global financial landscape.

On the positive side, the GBP is performing well against its major peers, benefiting from risk-on sentiment that has favored currencies like the Pound.

However, the outlook for the GBP remains uncertain as the Bank of England (BoE) is widely expected to reduce interest rates by 25 basis points to 4.5% during its February policy meeting, which could weigh further on the currency. This combination of factors leaves the GBP/USD pair in a precarious position for the near term.

Uncertain Outlook for GBP as BoE Expected to Cut Rates Amid Economic Concerns

On the BoE front, the outlook for the Pound Sterling remains uncertain as the Bank of England (BoE) is expected to cut interest rates by 25 basis points (bps) to 4.5% in February.

This decision follows soft economic data, including weak inflation and retail sales numbers for December, as well as modest GDP growth.

Moreover, weak labor demand from the three months ending in November has prompted traders to price in a rate reduction. The BoE faces challenges with economic growth slowing down, prompting the need for such a move.

However, there are still concerns regarding rising wage growth in the UK, which could keep inflation pressures high, particularly in the service sector.

On Tuesday, the Office for National Statistics (ONS) reported that average earnings excluding bonuses increased by 5.6%, which was faster than the expected 5.5% and higher than the previous figure of 5.2%.

This wage growth could be a key factor for the BoE to consider when deciding on future rate cuts, as higher wages could continue to fuel inflation.

Looking ahead, traders and investors will be watching the upcoming preliminary S&P Global/CIPS Purchasing Managers Index (PMI) data for January, which is set to be released on Friday.

This data will provide further insight into the UK economy and could influence the BoE's decision on interest rates, as well as the performance of the Pound Sterling in the coming weeks.

Therefore, the Bank of England's expected rate cut and concerns over wage growth could weigh on the Pound, limiting its strength against the US Dollar. The uncertainty surrounding the UK's economic outlook may lead to further pressure on the GBP/USD pair.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD – Technical Analysis

The GBP/USD pair is trading at $1.23350, down 0.08%, as it hovers near critical support levels amid a cautious market sentiment.

The pivot point at $1.23443 serves as a key reference level for traders, with the pair struggling to sustain gains above it. A sustained move below this pivot could accelerate selling pressure, with immediate support at $1.22704, followed by further downside targets at $1.22151 and $1.21609.

The presence of the 50-day EMA at $1.22459 provides additional support, suggesting a potential slowdown in bearish momentum should the price approach this level.

On the upside, resistance levels are identified at $1.24064, $1.24540, and $1.25056. A break above these resistance levels could signal a reversal in sentiment, potentially attracting fresh buying interest.

However, given the current market dynamics, selling pressure is likely to dominate unless the pair manages to hold above $1.23443.

From a technical standpoint, GBP/USD remains under short-term bearish pressure, with the recommended sell entry below $1.23434.

A move toward the take-profit target of $1.22707 remains in play, with a stop-loss positioned at $1.23902 to manage risk effectively. Traders should remain vigilant to upcoming economic releases that could influence price action and shift momentum.

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GBP/USD

Daily Trade Ideas

GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LHFX Technical Analysis
Jan 22, 2025
Gbpusd

Daily Price Outlook

- GBP/USD struggles below the pivot at $1.23443, reinforcing a bearish outlook.

- Immediate support lies at $1.22704, with a break lower exposing $1.22151 and $1.21609.

- A move above $1.24064 could shift sentiment, but bearish pressure remains dominant.

The GBP/USD pair is trading at $1.23350, down 0.08%, as it hovers near critical support levels amid a cautious market sentiment.

The pivot point at $1.23443 serves as a key reference level for traders, with the pair struggling to sustain gains above it. A sustained move below this pivot could accelerate selling pressure, with immediate support at $1.22704, followed by further downside targets at $1.22151 and $1.21609.

The presence of the 50-day EMA at $1.22459 provides additional support, suggesting a potential slowdown in bearish momentum should the price approach this level.

On the upside, resistance levels are identified at $1.24064, $1.24540, and $1.25056. A break above these resistance levels could signal a reversal in sentiment, potentially attracting fresh buying interest.

However, given the current market dynamics, selling pressure is likely to dominate unless the pair manages to hold above $1.23443.

From a technical standpoint, GBP/USD remains under short-term bearish pressure, with the recommended sell entry below $1.23434.

A move toward the take-profit target of $1.22707 remains in play, with a stop-loss positioned at $1.23902 to manage risk effectively. Traders should remain vigilant to upcoming economic releases that could influence price action and shift momentum.

GBP/USD Price Chart - Source: Tradingview
GBP/USD Price Chart - Source: Tradingview

GBP/USD - Trade Ideas

Entry Price – Sell Below 1.23434

Take Profit – 1.22707

Stop Loss – 1.23902

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$727/ -$468

Profit & Loss Per Mini Lot = +$72/ -$46

GBP/USD