GBP/USD holds gains near 1.2600 in quiet US holiday trade
- GBP/USD maintains last week’s gains after upbeat UK GDP data.
- BoE’s Catherine Mann signals a dovish shift, weighing on sentiment.
- Traders eye UK jobs, inflation data; Fed speakers and FOMC minutes ahead.
The Pound Sterling (GBP) registered modest gains versus the US Dollar (USD) on Monday in thin liquidity trade due to the observance of US President's Day. At the time of writing, the GBP/USD pair exchanged hands shy of 1.2600, up 0.05%.
Sterling steadies, but dovish BoE tilt may cap upside
Cable maintained its profits from last week, following better-than-expected Gross Domestic Product (GDP) figures for the last quarter of 2024. However, a dovish tilt by Bank of England (BoE) member Catherine Mann could weigh on the GBP/USD pair and push it lower.
Recently, BoE Governor Andrew Bailey reiterated that inflation is slowing and added that an expected increase in prices would be short-lived. Traders are eyeing the release of UK labor market data on Tuesday, followed by inflation figures, with the Consumer Price Index (CPI) expected to rise from 2.5% to 2.8%.
Aside from this, Philadelphia Fed Patrick Harker said the status of the economy warrants a steady rate policy and monetary policy is in a good place. He added that inflation is elevated and has been sticky for recent months and that the Fed policy stance should continue to lower inflation.
The US economic docket will feature further Fed speakers, housing data, the latest FOMC meeting minutes, Initial Jobless Claims, and S&P Global Flash PMIs.
GBP/USD Price Forecast: Technical outlook
Given the fundamental backdrop, GBP/USD surges, as momentum favors further upside as the Relative Strength Index (RSI) remains bullish. Nevertheless, the pair remains below last Friday’s peak of 1.2629, with buyers unable to crack the latter and if sellers drive the exchange rate below 1.2600, further downside lies ahead.
Key support levels would be the February 5 high, which turned support at 1.2549, followed by the 50-day Simple Moving Average (SMA) at 1.2468. Conversely, if GBP/USD clears the February 14 high of 1.2629, the pair could aim for the 100-day SMA at 1.2686, ahead of the 200-day SMA at 1.2786.
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 Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | -0.05% | -0.53% | 0.06% | -0.24% | -0.28% | 0.13% | |
| EUR | -0.13% | -0.02% | -0.71% | 0.04% | -0.28% | -0.31% | 0.10% | |
| GBP | 0.05% | 0.02% | -0.57% | 0.06% | -0.20% | -0.29% | 0.13% | |
| JPY | 0.53% | 0.71% | 0.57% | 0.59% | 0.32% | 0.46% | 0.64% | |
| CAD | -0.06% | -0.04% | -0.06% | -0.59% | -0.28% | -0.34% | 0.07% | |
| AUD | 0.24% | 0.28% | 0.20% | -0.32% | 0.28% | -0.03% | 0.39% | |
| NZD | 0.28% | 0.31% | 0.29% | -0.46% | 0.34% | 0.03% | 0.42% | |
| CHF | -0.13% | -0.10% | -0.13% | -0.64% | -0.07% | -0.39% | -0.42% |
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
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
