GBP/USD dives to multi-week lows amid USD strength, eyes on BoE

GBP/USD dropped more than 0.80%, testing the 1.2750 zone.
British and American Manufacturing sectors showed weakness in July.
US JOLTs figures hinted at some softness in the labour market. Eyes on additional ADP, NFPs and Claims.

Patricio Martín FXStreet

The GBP weakened on Tuesday against the USD as the Greenback gained ground against most of its rivals. Ahead of Thursday’s Bank of England (BoE) decision, the weak British made the GBP lose interest while markets await key labour data from the US. Economic data reported on the session from the US came in weak, but the DXY index hold gains above 102.00.

On Tuesday’s session, the US reported mid-tier data. Though slightly below forecast at 46.4, the US ISM July PMI increased from the previous reading of 46. Job Openings on JOLT fell short of expectations, coming in at 9.58M instead of 9.62M. According to Fed Chairman Powell, the economy is resilient, but decisions about the future will be made based on new information, which could lead to volatility in USD price dynamics. This week, investors will be closely watching ADP job employment change, Jobless Claims, and Nonfarm Payrolls to begin placing bets on the upcoming Fed meetings.

On the other hand, the manufacturing PMI released by the Chartered Institute of Purchasing & Supply and S&P Global stood in contraction territory in July, coming in at 45.3, slightly higher than the 45 expected. That said, the focus is on Thursday’s Bank of England (BoE) decision, where markets anticipate a 25 bps hike. Investors will also closely monitor Andrew Bailey’s words to find clues regarding forward guidance.

GBP/USD Levels to watch

The GBP/USD indicates a neutral to bearish technical outlook on the daily chart, suggesting that the bulls might be losing steam on the short term. The Relative Strength Index (RSI) shows a negative slope and fell below its midline, and the Moving Average Convergence Divergence (MACD) displays fading green bars. Moreover, in the bigger picture, the pair is below the 20-day Simple Moving Average (SMA) but above the 100 and 200-day SMAs, indicating that the bulls still have the upper hand.

Support levels: 1.2730, 1.2710, 1.2700.
Resistance levels: 1.2830, 1.2850,1.2900 (20-day SMA).

GBP/USD Daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD stays bid above 0.7100 on Australian trade data, Mideast optimism

AUD/USD clings to minor recovery gains above 0.7100 in the Asian session on Thursday as a new Israel-Lebanon ceasefire keeps a lid on the safe-haven US Dollar. Meanwhile, strong AustralianTrade Balane data also help the Aussie pair sustain the bounce from weekly lows.

USD/JPY hovers near the 160.00 intervention threshold on Mideast tensions

USD/JPY struggles to find acceptance above 160.00 and retreats from a one-month high in the Asian session on Thursday amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, a new Israel-Lebanon ceasefire caps the US Dollar and supports the currency pair. However, renewed US-Iran tensions keep the downside limited in the Greenback and the pair.

Gold rebounds from one-week low as Israel-Lebanon truce pressures safe-haven USD

Gold gains some positive traction on Thursday and climbs to the $4,475 area during the Asian session, reversing a major part of the previous day's slide to a one-week low. The Israel-Lebanon truce prompts some profit-taking around the US Dollar and supports the commodity.

Ethereum: Long-term holders' capitulation drives ETH below $1,800

Ethereum has fallen below $1,800 on Wednesday, the first time since May 2025 following accelerated spot selling pressure and distributions from long-term holders. The Age Consumed metric, which tracks the movement of previously idle tokens or long-term holders' coins, spiked over the past two days as prices declined, indicating increased selling activity among this cohort.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.