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GBP/USD eases from 3-year high as BoE turns dovish, US data beats

  • GBP/USD slips 0.07% after hitting 1.3788; stalls just shy of psychological 1.3800 level.
  • US JOLTS job openings hit 7-month high; ISM manufacturing improves slightly but remains in contraction.
  • BoE’s Bailey signals softening labor market; UK Manufacturing PMI holds steady at 47.7.

The Pound Sterling (GBP) loses ground versus the US Dollar after hitting a new three-year peak of 1.3788, just shy of the 1.3800 figure. Economic data from the United States (US), along with dovish comments of the Bank of England’s (BoE) Governor Bailey, exerted downward pressure on the pair. The GBP/USD trades at 1.3721, down a minimal 0.07%.

Sterling retreats to 1.3721 after peaking at 1.3788, pressured by firm US data and Bailey’s rate cut hints

Market mood turned slightly negative. The latest JOLTS report revealed that job openings in May rose to their highest level since November, reaching 7.769 million, up from 7.391 million, and exceeding forecasts of 7.3 million. At the same time, the Institute for Supply Management (ISM) reported that business activity in June increased, although it contracted for the fourth consecutive month. The index rose by 49.0, up from 48.5 in May, above estimates of 48.8.

Federal Reserve Chair Jerome Powell revealed that policy is modestly restrictive and added that he can’t say if July is too early to cut rates, though he wouldn’t rule anything out.

In the meantime, the US Senate is poised to pass a $3.3 trillion “One Big Beautiful Bill,” which President Donald Trump intends to sign by July 4.

Across the pond, BoE Bailey said the labor market is cooling, hinting that the path of interest rates tilted to the downside.

Previously, UK economic data revealed that manufacturing conditions remain weak, according to S&P Global, with the Manufacturing PMI remaining unchanged at 47.7 compared to May, meeting estimates.

GBP/USD Price Forecast: Technical outlook

The pair is forming an ‘inverted hammer,’ showing buyers are reluctant to push the GBP/USD exchange rate past 1.3800. Bullish momentum seems to be fading, as demonstrated by the Relative Strength Index (RSI), peaking and aiming toward its 50-neutral line.

For a bearish continuation, the pair must clear 1.3700. Once done, the next support would be the June 13 high, now turned support, at 1.3631, followed by the 20-day SMA at 1.3584. Conversely, if GBP/USD rises past 1.3800, expect a test of 1.4000.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.11%0.12%-0.37%0.36%0.13%0.08%-0.06%
EUR-0.11%0.03%-0.57%0.26%0.10%-0.04%-0.15%
GBP-0.12%-0.03%-0.49%0.25%0.08%-0.06%-0.18%
JPY0.37%0.57%0.49%0.78%0.49%0.44%0.32%
CAD-0.36%-0.26%-0.25%-0.78%-0.25%-0.31%-0.43%
AUD-0.13%-0.10%-0.08%-0.49%0.25%-0.13%-0.26%
NZD-0.08%0.04%0.06%-0.44%0.31%0.13%-0.12%
CHF0.06%0.15%0.18%-0.32%0.43%0.26%0.12%

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).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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