- GBP/USD attracts buyers for the second consecutive day as the USD slumps to a fresh YTD low.
- Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the buck.
- A breakout through a multi-week-old range supports prospects for further gains for the major.
The GBP/USD pair gains strong follow-through positive traction for the second successive day on Thursday and advances to its highest level since October 2024 during the Asian session. Spot prices currently trade just above mid-1.3000s, up 0.40% for the day, and seem poised to climb further amid a bearish US Dollar (USD).
The USD Index (DXY), which tracks the Greenback against a basket of currencies, dives to a fresh year-to-day low in reaction to US President Donald Trump's trade tariffs, which lifts bets that the Federal Reserve (Fed) will resume its rate-cutting cycle soon. This, along with the anti-risk flow, triggers a steep decline in the US Treasury bond yields and further undermines the buck.
The British Pound (GBP), on the other hand, draws support from expectations that the Bank of England (BoE) will lower borrowing costs more slowly than other central banks, including the Fed. This further contributes to the bid tone surrounding the GBP/USD pair and supports prospects for an extension of a well-established uptrend from the January monthly swing low.
From a technical perspective, an intraday strong move up beyond the 1.3000 psychological mark confirms a breakout through a multi-week-old trading range. Moreover, oscillators on the daily chart are holding comfortably in positive territory and are still away from being in the overbought zone, which, in turn, validates the near-term constructive outlook for the GBP/USD pair.
Hence, some follow-through strength toward reclaiming the 1.3100 round figure, en route to the next relevant hurdle near the 1.3125 region, looks like a distinct possibility. The momentum could extend further beyond the 1.3155 intermediate barrier, towards the 1.3180 region and the 1.3200 mark.
On the flip side, the 1.3000 resistance breakpoint now seems to protect the immediate downside. Any further corrective slide could be seen as a buying opportunity near the 1.2955 region. This next relevant support is pegged near the 1.2900 mark and the 1.2875-1.2870 horizontal zone. A convincing break below the latter might shift the near-term bias in favor of bearish traders and drag the GBP/USD pair to the very important 200-day Simple Moving Average (SMA), currently pegged near the 1.2800 mark.
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 | -0.50% | -0.15% | -1.14% | 0.09% | 0.45% | 0.22% | -0.63% | |
| EUR | 0.50% | 0.10% | -0.63% | 0.62% | 0.98% | 0.74% | -0.11% | |
| GBP | 0.15% | -0.10% | -0.73% | 0.52% | 0.90% | 0.64% | -0.26% | |
| JPY | 1.14% | 0.63% | 0.73% | 1.21% | 1.63% | 1.23% | 0.48% | |
| CAD | -0.09% | -0.62% | -0.52% | -1.21% | 0.45% | 0.12% | -0.77% | |
| AUD | -0.45% | -0.98% | -0.90% | -1.63% | -0.45% | -0.24% | -1.13% | |
| NZD | -0.22% | -0.74% | -0.64% | -1.23% | -0.12% | 0.24% | -0.90% | |
| CHF | 0.63% | 0.11% | 0.26% | -0.48% | 0.77% | 1.13% | 0.90% |
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).
BRANDED CONTENT
Finding a broker with low spreads can make a big difference in your trading success. Discover our top picks for low-spread brokers, each offering unique benefits to fit your strategy.
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 bounces back above 1.1600 despite market caution ahead of US PPI data
EUR/USD holds the bounce above 1.1600 in the European morning on Wednesday. The pair appreciates amid a modest US Dollar retreat, driven by traders’ caution ahead of the upcoming US Producer Price Index data due later in the day.
GBP/USD extends rebound above 1.3400 after hot UK inflation data
GBP/USD extends the rebound above 1.3400 in the early European session on Wednesday. The pair is helped by an upside surprise in the UK Consumer Price Index (CPI) data for June, which weighs on the BoE rate cut expectations and supports the Pound Sterling. The US PPI data is next in focus.
Gold price sticks to intraday gains amid softer risk tone, subdued USD price action
Gold price regains positive traction during the Asian session on Wednesday and has now reversed a major part of the previous day's slide to the $3,320 area. Investors remain on edge amid persistent uncertainty surrounding US President Donald Trump's trade tariffs.
Trump strikes deal to unblock crypto bills in House, GENIUS Act set for vote
US President Donald Trump steps in to revive momentum for crypto legislation in the US House of Representatives. On Wednesday, Trump announced that 11 of the 12 House representatives have agreed to support the GENIUS ACT bill.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
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.