British Pound elevates despite firm US claims

GBP/USD trades slightly higher as the US Dollar fails to gain strong traction despite supportive US jobless claims data.
US Initial Jobless Claims fell to 215K, while Continuing Claims show layoffs remain limited but reemployment is slow.
The FOMC Minutes kept the Fed hawk stance in focus, while the Pound Sterling remains supported by sticky UK inflation concerns.

Agustin Wazne FXStreet

GBP/USD trades higher near the 1.3400 area on Thursday, as the US Dollar (USD) fails to find support from stronger-than-expected United States (US) jobless claims data and hawkish signals in the latest Federal Open Market Committee (FOMC) Minutes.

United States (US) Initial Jobless Claims fell to 215K, below expectations of 218K and the previous revised 217K, while the four-week average eased to 218.75K from 222.5K. However, Continuing Jobless Claims rose slightly to 1.814 million from 1.806 million, suggesting that while layoffs remain limited, workers are still taking longer to find new jobs.

The Greenback also remained supported after the FOMC Minutes showed that policymakers were divided on the inflation outlook, with some officials seeing a case for tighter policy if price pressure remains elevated. A few Fed officials reportedly saw a case for a rate hike at the June meeting, reinforcing the view that the Fed is not ready to turn dovish while inflation remains above target.

On the United Kingdom (UK) side, the Pound Sterling (GBP) is supported by a cautious outlook from the Bank of England (BoE). The BoE has warned that inflation could remain elevated due to energy price effects, while noting that the UK labor market is loosening and growth remains fragile. This keeps traders cautious on GBP as markets balance sticky inflation risks against signs of softer economic momentum.

Short-term technical analysis:

On the 4-hour chart, GBP/USD trades at 1.3400 with a constructive near-term bias as the pair holds above both the 20-period Simple Moving Average (SMA) at 1.3377 and the 100-period SMA at 1.3278. Price is also trading over nearby horizontal supports at 1.3389 and 1.3385, reinforcing a positive structure, while the Relative Strength Index (RSI) around 59 stays in bullish but not overbought territory, suggesting room for further upside.

On the topside, initial resistance is seen at 1.3411, with a subsequent barrier at 1.3422 where recent supply has been located. On the downside, a first layer of support emerges at 1.3389, followed by 1.3385, while deeper pullbacks would look toward the 20-period SMA at 1.3377 and then the 100-period SMA at 1.3278 as more significant demand zones.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD clings to gains near 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430, challenging the 1.3400 yardstick on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD faces resistance around 1.1450

EUR/USD keeps the bid bias although it seems to have met a tough hurdle around 1.1450 on Thursday. The pair’s advance follows the bearish tone in the US Dollar despite escalating tensions in the Middle East and a broad-based cautious stance from market participants.

Gold flirts with two-day highs, approaches $4,130

Gold stages a modest rebound on Thursday, setting aside a three-day losing streak and managing to surpass the $4,100 mark per troy ounce. However, steady geopolitical tensions have revived concerns over persistently high global inflation, reinforcing expectations of higher rates across the board and somewhat curtailing the yellow metal’s upside potential.

Bitcoin stalls as mixed ETF flows, renewed US-Iran tensions cap upside

Bitcoin trades at $63,000 on Thursday, recovering slightly after facing rejection near $64,000. Renewed geopolitical uncertainty has dampened risk appetite, limiting BTC upside potential.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.