- GBP/USD moves up and down in a tight channel near 1.2700.
- The near-term technical outlook suggests that the bearish bias remains intact.
- The US economic calendar will not feature any high-tier data releases on Wednesday.
GBP/USD lost nearly 0.7% on Tuesday and registered its lowest daily close since early July near 1.2670. The pair stages a correction and holds steady above 1.2700 in the European session on Wednesday.
British Pound PRICE This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.07% | 0.66% | 0.43% | -0.94% | -0.92% | -1.16% | 0.52% | |
| EUR | 0.07% | 0.66% | 0.35% | -1.00% | -0.83% | -1.19% | 0.49% | |
| GBP | -0.66% | -0.66% | -0.24% | -1.62% | -1.49% | -1.84% | -0.17% | |
| JPY | -0.43% | -0.35% | 0.24% | -1.34% | -1.40% | -1.59% | 0.11% | |
| CAD | 0.94% | 1.00% | 1.62% | 1.34% | 0.07% | -0.22% | 1.30% | |
| AUD | 0.92% | 0.83% | 1.49% | 1.40% | -0.07% | -0.37% | 1.32% | |
| NZD | 1.16% | 1.19% | 1.84% | 1.59% | 0.22% | 0.37% | 1.70% | |
| CHF | -0.52% | -0.49% | 0.17% | -0.11% | -1.30% | -1.32% | -1.70% |
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).
The recovery seen in the US Treasury bond yields following Monday's sharp decline helps the US Dollar (USD) stay resilient against its rivals on Tuesday. Although the improving risk sentiment limited the USD's gains, GBP/USD failed to gather recovery momentum.
The market mood remains upbeat early Wednesday, allowing GPB/USD find a foothold. At the time of press, the UK's FTSE 100 Index was up nearly 1% on the day and US stock index futures were rising between 0.8% and 1.1%.
In the absence of high-tier data releases, another bout of risk rally after Wall Street's opening bell could support Pound Sterling. Later in the day, the US Treasury will hold a 10-year note auction. In case the high-yield arrives above 4%, the US T-bond yield continue to stretch higher and provide an additional boost to the USD, making it difficult for GBP/USD to stage a decisive rebound.
On Thursday, the US Department of Labor will release weekly Initial Jobless Claims data.
GBP/USD Technical Analysis
GBP/USD trades below the descending trend line and the Relative Strength Index (RSI) indicator on the 4-hour chart stays near 40 after testing 30 on Tuesday, suggesting that the bearish bias remains intact.
In case GBP/USD confirms 1.2710-1.2700 (Fibonacci 78.6% retracement of the latest uptrend, psychological level align) as resistance, 1.2620 (static level, beginning point of the uptrend) and 1.2600 (psychological level, static level) could be seen as next support levels.
On the upside, the descending trend line aligns as first resistance at 1.2750 before 1.2780 (Fibonacci 61.8% retracement) and 1.2800 (200-period Simple Moving Average).
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, aka ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Gold trades near record-high, stays within a touching distance of $3,100
Gold clings to daily gains and trades near the record-high it set above $3,080 earlier in the day. Although the data from the US showed that core PCE inflation rose at a stronger pace than expected in February, it failed to boost the USD.
EUR/USD turns positive above 1.0800
The loss of momentum in the US Dollar allows some recovery in the risk-associated universe on Friday, encouraging EUR/USD to regain the 1.0800 barrier and beyond, or daily tops.
GBP/USD picks up pace and retests 1.2960
GBP/USD now capitalises on the Greenback's knee-jerk and advances to the area of daily peaks in the 1.2960-1.2970 band, helped at the same time by auspicious results from UK Retail Sales.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.