GBP/USD Price Analysis: Bulls pause ahead of key fundamental drivers

GBP/USD dips 0.16% to 1.2605 on Tuesday after reaching its highest level since mid-January.
RSI declines to 62, indicating a slowdown in bullish momentum, while MACD remains flat with green bars.
The pair eyes the 100-day SMA at 1.2660, with UK inflation and Retail Sales data set to provide direction.

Patricio Martín FXStreet

GBP/USD retreated slightly on Tuesday, edging down 0.16% to 1.2605 after an extended rally that propelled it to its highest level since mid-January. Despite this mild pullback, the broader outlook remains constructive, as the pair continues to set its sights on the 100-day Simple Moving Average (SMA) at 1.2660.

Momentum indicators suggest a temporary cooling-off period rather than a structural shift. The Relative Strength Index (RSI) has dipped to 62, signaling a slowdown in buying pressure but still holding in positive territory. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat with green bars, reinforcing the notion that the latest price action is more of a technical correction than a bearish reversal.

Looking ahead, GBP/USD could receive fresh volatility on Wednesday as the UK is set to release key economic data, including inflation figures and retail sales numbers. These reports will be crucial in shaping expectations for Bank of England policy and could provide the fundamental push needed for the pair to either resume its upward trajectory or extend its consolidation phase.

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 bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.

USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.