GBP/USD Price Analysis – Feb 24, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair gained strong upward momentum, reaching an intraday high of 1.2691 as the US Dollar weakened. The greenback’s decline gave the British Pound a boost, allowing it to extend its recent gains.
Meanwhile, uncertainty surrounds the Bank of England’s (BoE) monetary policy outlook. Although markets expect a gradual rate-cutting cycle this year, stronger-than-expected economic data has cast doubt on those projections.
As a result, the Pound continues to find support, with investors weighing the possibility of a more cautious approach from the BoE. If economic data remains robust, policymakers may delay aggressive easing, potentially providing further strength to GBP/USD.
On the flip side, uncertainty around US economic performance and Federal Reserve policy will continue to influence the pair’s direction in the coming sessions. Traders will keep a close eye on upcoming UK and US data releases for fresh cues.
Bank of England's Rate-Cutting Outlook and Economic Data Impact on GBP/USD
On the GBP front, the Bank of England (BoE) is expected to follow a moderate rate-cutting cycle this year. However, recent UK economic data has made traders rethink their expectations.
Strong Retail Sales, hotter-than-expected Consumer Price Index (CPI) data for January, and solid wage growth in the last three months of 2023 have led investors to reduce their bets on aggressive rate cuts.
Despite this, money markets still anticipate two more rate cuts this year after the BoE lowered its key interest rate by 25 basis points (bps) to 4.5% earlier this month.
Analysts at TD Securities, however, predict the BoE will cut rates four more times in 2024, citing risks such as potential trade tariffs if Donald Trump wins the U.S. election.
Yet, they have pushed their forecast for the next rate cut from March to May due to stronger-than-expected UK economic data. The uncertainty around monetary policy continues to impact the GBP/USD pair, as traders closely watch for signals from the central bank.
Looking ahead, speeches from BoE policymakers, including Clare Lombardelli, Swati Dhingra, and Deputy Governor Dave Ramsden on Monday, could provide fresh insights into the central bank’s stance.
US Dollar Weakens as Soft Services Data Fuels Fed Rate Cut Bets
On the US front, the broad-based US Dollar edged lower as weak services sector data raised expectations for an interest rate cut by the Federal Reserve (Fed) in June.
This decline was mainly triggered by the US preliminary S&P Global Purchasing Managers Index (PMI) for February, which showed a significant slowdown in business activity.
The Composite PMI rose at a slower pace, increasing only to 50.4 from 52.7 in January, with services sector activity unexpectedly contracting. The Services PMI fell to 49.7, dipping below the 50 mark for the first time in 25 months.
Economists had expected services to expand slightly. The report pointed to political uncertainty, including concerns over federal spending cuts and their potential impact on growth and inflation, as key factors behind the slowdown.
In contrast, the Manufacturing PMI showed positive signs, expanding to 51.6 in February from 51.2 in January, exceeding expectations. This growth in the manufacturing sector is seen as a result of US President Donald Trump’s tariff agenda, which aimed to boost local production.
Looking ahead, investors will focus on key data this week, including US Durable Goods Orders and the Personal Consumption Expenditures (PCE) Price Index, which could provide further clues on the Fed’s next move.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.26401, showing a slight upward movement, maintaining support above the pivot point at $1.26211. This level is crucial as it is reinforced by the 50 EMA at $1.26244, which is acting as dynamic support.
The technical outlook remains bullish as long as GBP/USD stays above this level. A break above the immediate resistance at $1.26896 could propel the pair toward the next resistance at $1.27569, with a potential extension to $1.28233.
On the downside, if prices fall below the pivot point, immediate support is at $1.25660, followed by $1.25087 and $1.24528. A break below the 50 EMA would signal a bearish reversal, increasing selling pressure. However, the overall outlook remains bullish as long as GBP/USD trades above $1.26211 and the 50 EMA.
Traders should watch for a decisive breakout above $1.26896 for a bullish continuation, while a drop below $1.26211 may indicate a bearish pullback.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish bias remains above $1.25906, with resistance at $1.26667 and a breakout potential toward $1.27128.
- 50-EMA at $1.24963 suggests underlying support, but a drop below $1.25209 may invite further selling pressure.
- Trade setup: Buy above $1.25899, target $1.26677, stop loss at $1.25537 for risk management.
The GBP/USD pair is trading at $1.26222, dipping -0.01%, as markets remain cautious amid shifting sentiment around the U.S. dollar.
The pair is hovering just above its pivot point at $1.25906, which serves as a crucial level—holding above this keeps the short-term bullish case intact, while a break lower could shift momentum back in favor of sellers.
On the upside, immediate resistance stands at $1.26667, and a breakout above this level could push the pair toward $1.27128, with an extended move targeting $1.27569 if bullish momentum builds.
However, if the pound fails to sustain its footing, support at $1.25209 could be tested. A breach below this level would expose the next downside targets at $1.24528 and $1.23883, where buyers may look to re-enter.
From a technical perspective, the 50-EMA at $1.24963 remains below the current price, reinforcing near-term bullish sentiment.
The overall trend, however, is delicate, with traders closely watching whether the pound can hold above the pivot zone. The broader picture suggests that while buyers have an edge, a failure to clear resistance levels could invite renewed selling pressure.
For traders, a buy entry above $1.25899 appears favorable, with a take-profit target at $1.26677, while a stop loss at $1.25537 helps mitigate downside risk.
The pound’s next directional move hinges on its ability to sustain above $1.25906, as a failure to do so may trigger increased volatility.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.25899
Take Profit – 1.26677
Stop Loss – 1.25537
Risk to Reward – 1: 2.1
Profit & Loss Per Standard Lot = +$778/ -$362
Profit & Loss Per Mini Lot = +$77/ -$36
GBP/USD Price Analysis – Feb 19, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair failed to gain much traction and remained sluggish around the 1.2607 level. However, the possible reason for this slow movement could be the uncertainty surrounding the UK economy, as traders awaited key inflation data.
Investors were cautious, trying to gauge whether the Bank of England (BoE) might adjust its interest rate policy based on new economic signals.
On the data front, the latest UK Consumer Price Index (CPI) data for January brought some surprises. Following this data, the British Pound found some strength against major currencies.
However, the rise in inflation often leads traders to speculate that the BoE might keep interest rates higher for longer to control price increases. As a result, GBP saw some support, even though overall market conditions remained cautious.
GBP/USD Reacts to Higher-Than-Expected UK Inflation Data Amid BoE Caution
On the GBP front, the release of the United Kingdom's (UK) Consumer Price Index (CPI) data for January showed higher-than-expected inflation, which provided some support to the GBP/USD currency pair. The annual headline CPI rose by 3%, beating the 2.8% forecast and up from 2.5% in December.
The core CPI, which excludes volatile items like food, energy, alcohol, and tobacco, also showed solid growth at 3.7%, matching expectations but improving from 3.2% previously. However, on a monthly basis, inflation eased slightly by 0.1%, a slower decline than anticipated.
Despite the positive inflation data, the Bank of England (BoE) remains cautious. The services sector, a key focus for the BoE, saw inflation rise to 5% from 4.4% in December, signaling persistent price pressures. However, BoE Governor Andrew Bailey downplayed concerns, suggesting that the rise in inflation might not last.
He believes that a sluggish economy could help control inflation and reiterated that while energy prices could push inflation higher in the short term, a gradual cooling of prices is still expected.
Looking ahead, investors are keeping an eye on the upcoming UK Retail Sales data for January and the preliminary S&P Global/CIPS Purchasing Managers Index (PMI) for February, which are due on Friday.
These reports could provide fresh clues on the UK's economic health and potentially influence the direction of the GBP/USD currency pair.
GBP/USD Rises as US Dollar Weakens Ahead of Fed Minutes
On the other hand, the losses in the GBP/USD currency pair could be short-lived as the US Dollar lost traction and edged lower amid investor caution ahead of the Federal Reserve’s (Fed) meeting minutes.
Traders await clues on how long the Fed will keep interest rates steady at 4.25%-4.50%. The Fed paused its rate cuts in January after reducing rates by a total of 100 basis points in 2024, with Chair Jerome Powell emphasizing that further adjustments would depend on inflation progress and labor market conditions.
At the same time, San Francisco Fed Bank President Mary Daly supported keeping monetary policy “restrictive” until inflation continues to slow. Investors remain focused on the FOMC minutes, set to be released at 19:00 GMT, for any signs of future rate changes.
The Fed's cautious stance has kept the US Dollar under pressure, allowing the Pound to gain strength. However, any unexpected hawkish signals in the minutes could boost the US Dollar, potentially limiting GBP/USD gains.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.26222, dipping -0.01%, as markets remain cautious amid shifting sentiment around the U.S. dollar.
The pair is hovering just above its pivot point at $1.25906, which serves as a crucial level—holding above this keeps the short-term bullish case intact, while a break lower could shift momentum back in favor of sellers.
On the upside, immediate resistance stands at $1.26667, and a breakout above this level could push the pair toward $1.27128, with an extended move targeting $1.27569 if bullish momentum builds.
However, if the pound fails to sustain its footing, support at $1.25209 could be tested. A breach below this level would expose the next downside targets at $1.24528 and $1.23883, where buyers may look to re-enter.
From a technical perspective, the 50-EMA at $1.24963 remains below the current price, reinforcing near-term bullish sentiment.
The overall trend, however, is delicate, with traders closely watching whether the pound can hold above the pivot zone. The broader picture suggests that while buyers have an edge, a failure to clear resistance levels could invite renewed selling pressure.
For traders, a buy entry above $1.25899 appears favorable, with a take-profit target at $1.26677, while a stop loss at $1.25537 helps mitigate downside risk.
The pound’s next directional move hinges on its ability to sustain above $1.25906, as a failure to do so may trigger increased volatility.
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GBP/USD Price Analysis – Feb 17, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair prolonged its bullish rally and remained well bid around the 1.2603 level, hitting an intra-day high of 1.2607.
However, the reason for its upward trend can be attributed to investors turning cautious ahead of the UK employment data for the three months ending in December, set to be released on Tuesday.
Traders are closely watching this data to gauge the strength of the UK labor market, which could influence the Bank of England's future decisions. Meanwhile, the US Dollar Index (DXY) is struggling to stay above 106.70, its lowest level in over two months, adding some support to GBP/USD.
Another key factor influencing the British pound is the reaction of business owners to Chancellor of the Exchequer Rachel Reeves’ decision to raise employers’ contributions to National Insurance (NI). In the Autumn Budget, she announced an increase of 1.2%, bringing the rate to 15%, which will take effect in April.
This has raised concerns among businesses, as higher costs could impact hiring and overall economic growth. As a result, traders will be closely monitoring the UK labor market data to see how businesses are responding to these policy changes.
GBP/USD Gains Amid Cautious Sentiment Ahead of UK Employment Data
On the GBP front, the gains in the GBP/USD currency pair were mainly supported by investors being cautious ahead of the UK employment data for the three months ending in December, set to be released on Tuesday.
Investors are closely watching the UK labor market to see if business owners are still unhappy with the government’s decision to raise National Insurance contributions.
Chancellor Rachel Reeves recently announced a 1.2% increase, bringing the total to 15%, which will take effect in April. This move has led to a slowdown in private sector hiring, with only 35K new jobs added in the three months ending in November, a sharp drop from the 173K added in the previous period.
Meanwhile, Bank of England (BoE) Governor Andrew Bailey stated that he sees signs of weakness in the labor market but remains confident that inflation is on a downward path. The UK’s unemployment rate is expected to rise slightly to 4.5% in December.
Market participants will also be watching closely for UK wage growth data, as strong wage increases could keep inflation high, especially in the service sector.
The BoE has warned that inflation may pick up again before returning to its 2% target due to higher energy prices. As a result, weak employment conditions and high inflation expectations could raise concerns about stagflation risks. Later in the week, investors will also focus on UK CPI and Retail Sales data.
US Dollar Weakens as Market Sentiment Improves, Supporting GBP/USD
On the US front, the broad-based US dollar has been sluggish and remained subdued as market sentiment improved. The US dollar weakened as fears of an immediate global trade war eased after US President Donald Trump delayed the imposition of reciprocal tariffs, which are now unlikely to take effect before April 1.
Last week, investors had been worried about a potential trade war, expecting Trump to announce new tariffs on Thursday.
Meanwhile, recent US inflation data came in stronger than expected, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) showing higher-than-anticipated numbers for January.
This has led to cautious remarks from Dallas Federal Reserve Bank President Lorie Logan, who emphasized the need for patience before adjusting interest rates. She stated that the Federal Reserve would closely monitor upcoming economic data, as well as geopolitical developments and Trump’s economic policies.
GBP/USD – Technical Analysis
GBP/USD is hovering around $1.25960, showing signs of consolidation after a recent pullback. The pair is trading just above its pivot point at $1.25795, which serves as a critical level for determining near-term direction.
Immediate resistance stands at $1.26310, and a breakout above this level could drive bullish momentum toward the next resistance zones at $1.26667 and $1.27037.
On the downside, immediate support is seen at $1.25498, followed by key levels at $1.25104 and $1.24765. A failure to hold above $1.25498 could accelerate selling pressure, potentially triggering a deeper correction.
The 50-day EMA at $1.24956 suggests that the broader trend remains supported, as the moving average aligns closely with key support levels. If buyers maintain control above the $1.25793 entry point, a move toward $1.26303 appears likely, making it a strategic buy opportunity with a stop loss at $1.25488.
From a technical perspective, GBP/USD is positioned for a potential breakout if it maintains strength above the pivot point of $1.25795.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish above $1.25793 – Targeting $1.26303, with a stop-loss at $1.25488.
- Resistance at $1.26310 – A breakout could push GBP/USD toward $1.26667 and $1.27037.
- Support at $1.25498 – A drop below this level may trigger further downside toward $1.25104 and $1.24765.
GBP/USD is hovering around $1.25960, showing signs of consolidation after a recent pullback. The pair is trading just above its pivot point at $1.25795, which serves as a critical level for determining near-term direction.
Immediate resistance stands at $1.26310, and a breakout above this level could drive bullish momentum toward the next resistance zones at $1.26667 and $1.27037.
On the downside, immediate support is seen at $1.25498, followed by key levels at $1.25104 and $1.24765. A failure to hold above $1.25498 could accelerate selling pressure, potentially triggering a deeper correction.
The 50-day EMA at $1.24956 suggests that the broader trend remains supported, as the moving average aligns closely with key support levels. If buyers maintain control above the $1.25793 entry point, a move toward $1.26303 appears likely, making it a strategic buy opportunity with a stop loss at $1.25488.
From a technical perspective, GBP/USD is positioned for a potential breakout if it maintains strength above the pivot point of $1.25795.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.25793
Take Profit – 1.26303
Stop Loss – 1.25488
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$510/ -$305
Profit & Loss Per Mini Lot = +$51/ -$30
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD remains bearish below the $1.24525 pivot level.
- Immediate resistance at $1.24911; breakout needed for bullish reversal.
- Support at $1.23972; a break below could extend losses toward $1.23340.
GBP/USD is trading at $1.24440, struggling to hold ground as bearish sentiment prevails. The pair has dipped below its pivot point at $1.24525, signaling potential downside movement.
The strength of the U.S. dollar, driven by the Federal Reserve’s hawkish outlook and resilient economic data, continues to weigh on the British pound.
From a technical perspective, the 50-day EMA at $1.24194 is providing dynamic support, but if breached, it could accelerate losses. Immediate resistance is seen at $1.24911, and a break above this level may push GBP/USD toward the next targets at $1.25420 and $1.25987. However, with sellers maintaining control, any short-term gains could be met with resistance.
On the downside, $1.23972 is the first key support level. A sustained move below this level could deepen losses toward $1.23340, with the next major support resting at $1.22743.
Given the current trend, traders may consider sell positions below $1.24521, aiming for a take profit at $1.23843 while placing a stop loss at $1.24913 to manage risk.
Looking ahead, traders will monitor upcoming U.S. inflation figures which may further influence market sentiment, determining whether the dollar continues its dominance or retreats, giving GBP/USD a potential lift.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.24521
Take Profit – 1.23843
Stop Loss – 1.24913
Risk to Reward – 1:1.7
Profit & Loss Per Standard Lot = +$678/ -$392
Profit & Loss Per Mini Lot = +$67/ -$39
GBP/USD Price Analysis – Feb 12, 2025
Daily Price Outlook
GBP/USD – Technical Analysis
GBP/USD is trading at $1.24440, struggling to hold ground as bearish sentiment prevails. The pair has dipped below its pivot point at $1.24525, signaling potential downside movement.
The strength of the U.S. dollar, driven by the Federal Reserve’s hawkish outlook and resilient economic data, continues to weigh on the British pound.
From a technical perspective, the 50-day EMA at $1.24194 is providing dynamic support, but if breached, it could accelerate losses. Immediate resistance is seen at $1.24911, and a break above this level may push GBP/USD toward the next targets at $1.25420 and $1.25987. However, with sellers maintaining control, any short-term gains could be met with resistance.
On the downside, $1.23972 is the first key support level. A sustained move below this level could deepen losses toward $1.23340, with the next major support resting at $1.22743.
Given the current trend, traders may consider sell positions below $1.24521, aiming for a take profit at $1.23843 while placing a stop loss at $1.24913 to manage risk.
Looking ahead, traders will monitor upcoming U.S. inflation figures which may further influence market sentiment, determining whether the dollar continues its dominance or retreats, giving GBP/USD a potential lift.
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GBP/USD Price Analysis – Feb 10, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair sustained its bullish trend and remained higher around the 1.2419 level, hitting an intra-day high of 1.2422.
However, the reason for this upward trend can be attributed to the strong performance of the British Pound, which gained traction despite the bullish US Dollar.
Normally, a stronger US Dollar puts pressure on GBP/USD, but this time, the Pound showed resilience and even outperformed many other major currencies.
This strength in the Pound comes as investors digest the Bank of England’s (BoE) recent policy stance. The BoE has adopted a more cautious or “dovish” approach, signaling that interest rate cuts could come sooner than expected. At the same time, the central bank lowered its economic growth forecasts for the year.
Despite this, the Pound continues to hold strong, possibly because the market had already priced in these concerns, and investors are now focusing on other factors influencing GBP’s movement.
BoE’s Cautious Stance and Economic Outlook Impact on GBP/USD
On the BoE front, the Pound Sterling has been performing well against its major peers as investors focus on the Bank of England’s (BoE) recent stance. Last week, the BoE lowered interest rates by 0.25% to 4.5%.
BoE Governor Andrew Bailey mentioned that the outlook for monetary policy would be "gradual and cautious," with expectations that inflation in the UK could rise to 3.7% in the third quarter due to higher energy prices, before returning to the target of 2%.
Despite this, investors were surprised by a vote from BoE member Catherine Mann, who called for a larger 0.5% rate cut, signaling a more dovish stance on policy. This shift in tone raised concerns about the UK’s economic outlook, especially as the BoE also reduced its GDP growth forecast for the year to just 0.75%.
Besides this, the comments from BoE Chief Economist Huw Pill emphasized strong wage growth as a reason for caution in cutting rates further. He noted that wages increased by 5.6% in the three months ending November, the highest since June 2024.
Therefore, the BoE’s cautious stance and reduced GDP forecasts create uncertainty, limiting GBP/USD gains. However, strong wage growth supports the Pound. If Andrew Bailey signals further rate cuts in his speech, GBP/USD could weaken, but any hawkish tone may boost the pair.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.24049, down 0.02%, as the market consolidates following recent fluctuations. The 50-day Exponential Moving Average (EMA) at $1.24290 is acting as a resistance level, restricting bullish momentum while the pair struggles to maintain its footing above the pivot point at $1.23668.
With the U.S. dollar showing strength amid shifting macroeconomic conditions, GBP/USD remains vulnerable to further downside pressure.
The pivot point at $1.23668 is a crucial marker for trend direction. Holding above this level keeps the bullish bias intact, with immediate resistance at $1.24599, followed by $1.25374 and $1.25987.
A decisive break above these levels could open the door for a sustained upward move, particularly if market sentiment shifts in favor of the British pound.
On the downside, immediate support is seen at $1.23048, with further weakness potentially extending declines toward $1.22507 and $1.21903.
A failure to defend these levels could accelerate selling pressure, leading to deeper losses. However, a successful hold above $1.23668 may attract buyers, positioning GBP/USD for a possible rebound.
Traders considering a long position should look for entries above $1.23676, targeting $1.24422, with a stop loss at $1.23225 to manage risk effectively. If GBP/USD fails to sustain above the pivot, sellers may take control, driving the pair lower in the short term.
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GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD faces resistance at $1.24290, with the 50-day EMA limiting upside momentum.
- A breakout above $1.24599 could spark a rally toward $1.25374 and beyond.
- Failure to hold $1.23668 may trigger a bearish move toward $1.23048 and $1.22507.
The GBP/USD pair is trading at $1.24049, down 0.02%, as the market consolidates following recent fluctuations. The 50-day Exponential Moving Average (EMA) at $1.24290 is acting as a resistance level, restricting bullish momentum while the pair struggles to maintain its footing above the pivot point at $1.23668.
With the U.S. dollar showing strength amid shifting macroeconomic conditions, GBP/USD remains vulnerable to further downside pressure.
The pivot point at $1.23668 is a crucial marker for trend direction. Holding above this level keeps the bullish bias intact, with immediate resistance at $1.24599, followed by $1.25374 and $1.25987.
A decisive break above these levels could open the door for a sustained upward move, particularly if market sentiment shifts in favor of the British pound.
On the downside, immediate support is seen at $1.23048, with further weakness potentially extending declines toward $1.22507 and $1.21903.
A failure to defend these levels could accelerate selling pressure, leading to deeper losses. However, a successful hold above $1.23668 may attract buyers, positioning GBP/USD for a possible rebound.
Traders considering a long position should look for entries above $1.23676, targeting $1.24422, with a stop loss at $1.23225 to manage risk effectively. If GBP/USD fails to sustain above the pivot, sellers may take control, driving the pair lower in the short term.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.23676
Take Profit – 1.24422
Stop Loss – 1.23225
Risk to Reward – 1:1.6
Profit & Loss Per Standard Lot = +$746/ -$451
Profit & Loss Per Mini Lot = +$74/ -$45
GBP/USD Price Analysis – Feb 05, 2025
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 – 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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