GBP/USD consolidates gains around the mid-1.2700s ahead of UK, US PMI data

GBP/USD hovers around 1.2755 on the weaker USD, the Bank of England’s (BoE) hawkish bias.
The BoE decided to keep interest rates steady at a 15-year high of 5.25% on Thursday.
Fed Chair Jerome Powell said the rate hike cycle was likely over in the US and lower rates were coming into view.
Market players await the UK S&P Global/CIPS PMI and US S&P Global PMI reports, due later on Friday.

Lallalit Srijandorn FXStreet

The GBP/USD pair consolidates its gains around 1.2755 after retracing from 1.2793, the highest level since August during the early Asian session on Friday. The hawkish bias from the Bank of England (BoE) lends some support to the British Pound and lifts the GBP/USD pair.

As widely expected, the BoE decided to keep interest rates steady at a 15-year high of 5.25% on Thursday. The BoE governor, Andrew Bailey, said that there was still some way to go before inflation hit its target. Bailey further stated that the central bank will continue to monitor the data closely and take the decisions necessary to bring inflation back to 2%. The BoE’s guidance contrasted with the dovish remarks from the Federal Reserve (Fed), which boost the British Pound (GBP) and act as a tailwind for the pair.

Among the major central banks, the Fed is currently seen as the early central bank to lower interest rates. On Wednesday, the Fed maintained the interest rate unchanged at its last meeting of the year. Fed Chair Jerome Powell said the rate hikes cycle was likely over in the US and lower rates were coming into view, with 75 basis points (bps) of rate cuts anticipated by policymakers next year. Nonetheless, Fed fund futures are pricing in 1.5 percentage points of rate cuts in 2024. This, in turn, exerts some selling pressure on the Greenback across the board.

Investors will monitor the preliminary UK S&P Global/CIPS PMI report on Friday. The Composite PMI is expected to grow to 50.9 from 50.7 and the Manufacturing PMI is projected to rise to 47.5 from 47.2. Also, the US S&P Global PMI report will be due later in the day. These figures could give a clear direction to the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2755
Today Daily Change	-0.0017
Today Daily Change %	-0.13
Today daily open	1.2772

Trends
Daily SMA20	1.2597
Daily SMA50	1.2379
Daily SMA100	1.2454
Daily SMA200	1.25

Levels
Previous Daily High	1.2794
Previous Daily Low	1.2612
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2725
Daily Fibonacci 61.8%	1.2682
Daily Pivot Point S1	1.2658
Daily Pivot Point S2	1.2544
Daily Pivot Point S3	1.2476
Daily Pivot Point R1	1.284
Daily Pivot Point R2	1.2908
Daily Pivot Point R3	1.3022

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD weakens below 1.3250 as UK Prime Minister Keir Starmer resigns

The GBP/USD pair loses ground to near 1.3245 during the early Asian trading hours on Tuesday. Political uncertainty in the United Kingdom continues to weigh on the British Pound against the US Dollar. The preliminary readings of the S&P Global Purchasing Managers Index from both the US and the UK are due later on Tuesday.

Euro declines below 1.1450 on US-Iran peace deal uncertainty

The EUR/USD pair trades with mild losses around 1.1425. The US Dollar edges higher against the Euro amid risk-off sentiment and a hawkish Federal Reserve stance. Traders will keep an eye on the preliminary readings of the Purchasing Managers Index from Germany, the Eurozone, and the United States later on Tuesday.

Gold drops to nearly two-week low, seems vulnerable amid Fed hike bets, bullish USD

Gold adds to its Asian session losses, and drops to a nearly two-week low, around the $4,115 region in the last hour amid a bullish US Dollar. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal. This helps the USD in preserving its recent strong gains to the highest level since May 2025.

Bitcoin holds steady as ETF outflows decline – DEXE and TIA extend gains

Bitcoin hovers above $64,000 at press time on Tuesday, holding steady after a roughly 4% drop last week. Data shows that institutional outflows are easing, suggesting broader market recovery potential, while DeXe and Celestia have emerged as frontrunners over the last 24 hours.

Are American consumers actually “resilient“?

A common label gets placed upon American buyers: resilient. Just last week, Marianne Lake, the CEO of Consumer and Community Banking — and a member of the JPMorganChase Operating Committee — affirmed this sentiment. While she did note some weariness regarding future inflation’s effect on consumers, she reiterated the common adjective: resilient.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.