- GBP/USD edges lower on Friday amid the emergence of some USD dip-buying.
- The BoE’s hawkish tilt could underpin the GBP and limit losses for the major.
- The technical setup favors bears and supports prospects for a further downfall.
The GBP/USD pair struggles to build on the previous day's positive move and faces rejection near the 100-day Simple Moving Average (SMA) during the Asian session on Friday. Spot prices currently trade around the 1.2965-1.2960 region, down 0.15% for the day amid a modest US Dollar (USD) uptick, though the downside seems limited on the back of the Bank of England's (BoE) hawkish stance.
In fact, the BoE warned that the expansive Autumn Budget introduced by Chancellor Rachel Reeves is expected to fuel inflation, suggesting that it adopt a cautious stance toward rate cuts in 2025. In contrast, the Federal Reserve (Fed) Chair Jerome Powell failed to offer any cues that the central bank was likely to pause rate cuts in the near term. This leads to a further decline in the US Treasury bond yields and might hold back the USD bulls from placing aggressive bets, which, in turn, should offer support to the GBP/USD pair.
From a technical perspective, the range-bound price action witnessed over the past three weeks or so could be categorized as a bearish consolidation phase against the backdrop of the recent pullback from the highest level since February 2022. Moreover, failure to build on this week's recovery from a nearly three-month low, around the 1.2835 region, suggests that the path of least resistance for the GBP/USD pair is to the downside. The outlook is reinforced by the fact that oscillators on the daily chart are holding in negative territory.
That said, it will still be prudent to wait for a sustained break and acceptance below the 1.2900 mark before positioning for a fallback towards the 200-day SMA, currently pegged near the 1.2815 region. This is followed by the 1.2800 round figure, which if broken should pave the way for a further near-term depreciating move and drag the GBP/USD pair to the 1.2765 intermediate support en route to the 1.2700 mark. The downward trajectory could extend further towards the August monthly swing low, around the 1.2665 area.
On the flip side, bulls need to wait for a move beyond the 100-day SMA and the 1.3000 psychological mark before positioning for any meaningful appreciating move. The GBP/USD pair might then climb to the 1.3070 supply zone and then aim to reclaim the 1.3100 mark. Some follow-through buying will suggest that a one-month-old corrective decline has run its course and shift the near-term bias back in favor of bullish traders.
GBP/USD daily chart
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.18% | 0.12% | -0.17% | 0.14% | 0.38% | 0.31% | 0.12% | |
| EUR | -0.18% | -0.07% | -0.31% | -0.04% | 0.20% | 0.13% | -0.06% | |
| GBP | -0.12% | 0.07% | -0.26% | 0.02% | 0.27% | 0.19% | 0.00% | |
| JPY | 0.17% | 0.31% | 0.26% | 0.30% | 0.54% | 0.47% | 0.28% | |
| CAD | -0.14% | 0.04% | -0.02% | -0.30% | 0.24% | 0.18% | -0.02% | |
| AUD | -0.38% | -0.20% | -0.27% | -0.54% | -0.24% | -0.07% | -0.26% | |
| NZD | -0.31% | -0.13% | -0.19% | -0.47% | -0.18% | 0.07% | -0.20% | |
| CHF | -0.12% | 0.06% | 0.00% | -0.28% | 0.02% | 0.26% | 0.20% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD off highs, back to the 1.1050 area ahead of Fed Minutes
EUR/USD keeps its bullish stance well in place, adding to Tuesday's uptick and retesting the vicinity of the 1.1100 neighbourhood on the back of the intense sell-off in the Greenback, all amid steady concerns over the impact of the China-US trade war.
GBP/USD eases to daily lows near 1.2750, USD picks up pace
The recovery attempt in the US Dollar is now prompting GBP/USD to give away part of the earlier advance past 1.2800 the figure and recedes to the mid-1.2700s in a context still widely favourable to the risk complex.
Gold climbs further, retargets $3,100
Gold preserves its bullish momentum and approaches the $3,100 level per troy ounce on Wednesday, underpinned by the steady safe-haven demand in response to trade tensions between the US and China.
Fed Minutes to offer clues on rate cut outlook amid tariff uncertainty
The eagerly awaited minutes from the US Fed’s March 18-19 monetary policy meeting are set for release on Wednesday at 18:00 GMT. During the gathering, policymakers agreed to keep the Fed Funds Target Range (FFTR) unchanged at 4.25%-4.50%.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.