British Pound weakens amid reviving USD demand; defends 1.3300 ahead of key US data
- GBP/USD attracts fresh sellers during the Asian session amid reviving USD demand.
- Oil-driven inflation concerns keep Fed rate hike bets on the table and support the buck.
- Geopolitical risks further underpin the USD as traders look to crucial US macro data.
The GBP/USD pair meets with a fresh supply during the Asian session on Thursday, stalling the previous day's bounce from the 1.3275-1.3270 region, or a nearly two-week low. Spot prices drop to the 1.3300 mark in the last hour amid a broadly firmer US Dollar (USD), though the lack of follow-through selling warrants caution for bearish traders.
The USD regains positive traction following the previous day's post-FOMC slide as inflation risks stemming from elevated energy prices keep bets for another rate hike by the Federal Reserve (Fed) this year. According to the CME Group's FedWatch Tool, traders are currently assigning around an 80% chance that the US central bank will raise borrowing costs again in December. Moreover, persistent geopolitical uncertainties act as a tailwind for the safe-haven Greenback, which, in turn, is seen exerting some downward pressure on the GBP/USD pair.
In the latest developments surrounding the Middle East crisis, US Vice President JD Vance reportedly sent a letter to Mohsen Rezaei, secretary of Iran's Supreme National Security Council, in an effort to revive peace negotiations. This unfolds as US President Donald Trump threatens to resume military action in the approaching weeks. The Wall Street Journal reported that US officials have told several Middle East countries and regional allies to be prepared for a potential short, intense military campaign against Iran after the November 3 midterm elections.
Meanwhile, regional mediators led by Qatar are working to restart negotiations between the US and Iran to prevent a resumption of the war. Furthermore, USD bulls might opt to wait for more cues about the Fed's future policy path beyond December before placing fresh bets. Hence, the focus now shifts to the release of the Advance US Q3 GDP report and the Personal Consumption Expenditures (PCE) Price Index. In the meantime, expectations of tighter monetary policy from the Bank of England (BoE) could help limit the downside for the GBP/USD pair.
GBP/USD 4-hour chart
Technical Analysis
The GBP/USD pair holds a mildly bullish near-term bias above the 100-period Simple Moving Average (SMA) on the 4-hour chart and the mid-range Fibonacci supports. Spot prices currently trade just above the 38.2% retracement, suggesting a constructive tone while upside is being probed toward the upper part of the recent recovery range.
Meanwhile, initial resistance emerges at the 23.6% Fibo. retracement at 1.3352, ahead of the cycle high anchor near 1.3417. On the downside, immediate support is seen at the 38.2% retracement at 1.3311, followed by the 50.0% level at 1.3278 and deeper Fibonacci floors at 1.3246 and 1.3199, with the 1.3140 area marking a more distant structural base.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | 0.02% | 0.03% | -0.10% | -0.10% | -0.02% | 0.05% | |
| EUR | -0.07% | -0.05% | -0.04% | -0.19% | -0.18% | -0.10% | -0.03% | |
| GBP | -0.02% | 0.05% | 0.00% | -0.14% | -0.13% | -0.05% | 0.01% | |
| JPY | -0.03% | 0.04% | 0.00% | -0.14% | -0.13% | -0.07% | 0.00% | |
| CAD | 0.10% | 0.19% | 0.14% | 0.14% | 0.01% | 0.09% | 0.16% | |
| AUD | 0.10% | 0.18% | 0.13% | 0.13% | -0.01% | 0.09% | 0.14% | |
| NZD | 0.02% | 0.10% | 0.05% | 0.07% | -0.09% | -0.09% | 0.10% | |
| CHF | -0.05% | 0.03% | -0.01% | -0.01% | -0.16% | -0.14% | -0.10% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
