Pound Sterling Price News and Forecast: GBP/USD at make or a break near 1.3600

GBP/USD Price Forecast: At make or a break near 1.3600

The GBP/USD pair claws back half of its early losses during the European trading session on Tuesday, but is still 0.23% down to near 1.3600. The Cable faced intense selling pressure as the Pound Sterling (GBP) declined after the release of the United Kingdom (UK) labor market data for the three months ending December, which showed further deterioration in the job market.

The Office for National Statistics (ONS) reported that the ILO Unemployment Rate accelerated to 5.2%, the highest level seen in five years. Economists expected the jobless rate to have remained steady at 5.1%. The number of jobs created during the period was 52K, lower than the prior reading of 82K. Read more...

GBP/USD picks up bearish vibes after weak jobs data

GBP/USD slid to an almost two-week low of 1.3551 early Tuesday after disappointing UK employment data dampened sentiment. The report showed softer job growth, an unchanged unemployment rate at 5.1%, and a sharper slowdown in average weekly earnings in December – reinforcing expectations that the Bank of England could proceed with a 25bps rate cut in March.

The weaker data revived selling pressure after the bulls failed to secure a close above the 20-day simple moving average (SMA) near 1.3635 on Monday. The technical indicators are now tilting lower, reflecting building downside momentum. However, further losses may remain contained unless the pair violates the tentative support trendline drawn from November near 1.3500. The 200-day SMA might also serve as an additional layer of safety near 1.3440 and around the 50% Fibonacci retracement of the November–January rally. However, any declines lower would weaken the short-term structure and likely accelerate declines toward the 61.8% Fibonacci retracement at 1.3340. Read more...

GBP/USD Price Forecast: Seems vulnerable as weak UK jobs data lifts March BoE rate cut bets

The GBP/USD pair drifts lower for the second straight day on Tuesday and drops to over a one-week low, around mid-1.3500s, during the early European session following the release of the UK jobs report. The Office for National Statistics (ONS) reported that the  ILO UK Unemployment Rate climbed to 5.2% in the three months to December, from 5.1% the prior month, marking the highest level since early 2021. Additional details showed that the number of people claiming jobless benefits rose to 28.8K in January, pointing to continued softening in the UK labour market at the start of 2026.

Furthermore, the rate of annual wage growth also moderated during the reported period, dropping to its lowest level in almost four years. In fact, Average Earnings Excluding Bonus  increased 4.2% in the three months ended December, down from 4.6% in the previous quarter, while the gauge including bonuses slowed to 4.2% from the former reading of 4.6%. Barring any surprises from the UK consumer inflation figures, due for release on Wednesday, the latest employment details reaffirm bets for a March interest rate cut by the Bank of England (BoE) and weigh on the British Pound (GBP). Read more...