GBP/USD Forecast: Pound Sterling fails to stabilize above 1.2500
- GBP/USD loses traction after posting gains for three consecutive days.
- The technical outlook is yet to point to a buildup of bearish momentum.
- Investors are likely to ignore US data releases ahead of the Fed meeting.
GBP/USD climbed to its highest level in three weeks above 1.2500 on Monday and posted gains for the third consecutive day. Early Tuesday, however, the pair reversed its direction and declined below 1.2450.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.52% | 0.34% | 0.56% | 0.17% | 0.57% | 0.51% | 0.44% | |
| EUR | -0.52% | -0.18% | 0.03% | -0.35% | 0.04% | -0.01% | -0.08% | |
| GBP | -0.34% | 0.18% | 0.23% | -0.17% | 0.19% | 0.16% | 0.10% | |
| JPY | -0.56% | -0.03% | -0.23% | -0.39% | 0.00% | -0.07% | -0.13% | |
| CAD | -0.17% | 0.35% | 0.17% | 0.39% | 0.40% | 0.33% | 0.27% | |
| AUD | -0.57% | -0.04% | -0.19% | -0.00% | -0.40% | -0.06% | -0.13% | |
| NZD | -0.51% | 0.01% | -0.16% | 0.07% | -0.33% | 0.06% | -0.07% | |
| CHF | -0.44% | 0.08% | -0.10% | 0.13% | -0.27% | 0.13% | 0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
In the absence of high-tier data releases, investors continue to react to headlines surrounding US President Donald Trump's trade policy.
US Treasury Secretary Scott Bessent said late Monday that he is pushing for universal tariffs on imports to start at 2.5% and rise gradually, per the Financial Times. While speaking to reporters in the early Asian session on Tuesday, President Trump responded to these remarks, saying that he wants tariffs “much bigger than 2.5%.” Moreover, Trump noted they are going to be placing tariffs on foreign production of computer chips, semiconductors and pharmaceuticals “in the very near future," to return production of these essential goods to the US.
Later in the day, December Durable Goods Orders and January CB Consumer Confidence Index data will be featured in the US economic calendar. More importantly, the Federal Reserve's (Fed) two-day monetary policy meeting will start on Tuesday. Before the Fed announces policy decisions on Wednesday, market participants could stay focused on comments from Trump, or his administration, on tariffs.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart retreated but managed to hold comfortably above 50, reflecting sellers' hesitancy.
In case GBP/USD confirms 1.2450 as resistance, where the Fibonacci 50% retracement level of the latest downtrend and the 200-period Simple Moving Average (SMA) align, additional losses toward 1.2400 (static level, round level), 1.2370 (Fibonacci 38.2% retracement) and 1.2320 (100-period SMA) could be seen.
If GBP/USD stabilizes above 1.2450, resistances could be spotted at 1.2500 (round level, static level) and 1.2530 (Fibonacci 61.8% retracement).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
