Pound Sterling Price News and Forecast: GBP/USD holds ground after UK inflation data

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling holds ground after UK inflation data

After falling to a fresh eight-day low near 1.3460 in the Asian session on Wednesday, GBP/USD recovered to the 1.3500 area in the European trading hours. The pair's technical outlook, however, doesn't yet offer any convincing signs of an extended recovery.

The broad-based US Dollar (USD) strength amid a risk-averse market environment caused GBP/USD to stretch lower on Tuesday and early Wednesday, before Pound Sterling found support on July inflation data from the UK. Read more...

GBP/USD Forecast: Pound Sterling struggles to attract buyers

GBP/USD stretched lower in the Asian session on Tuesday and touched its lowest level in a week below 1.3500 before staging a rebound. The pair's near-term technical outlook suggests that investors refrain from placing themselves for an extended recovery.

The renewed US Dollar (USD) strength on souring market mood caused GBP/USD to turn south at the beginning of the week. However, headlines coming out of the meeting between United States (US) President Donald Trump and Ukrainian President Volodymyr Zelenskyy helped geopolitical tensions ease, limiting the USD's gains. Read more...

GBP/USD keeps August rally on pause

GBP/USD is trading quietly ahead of a busy UK data calendar, consolidating between the recent high of 1.3580 and the 50-day simple moving average (SMA) at 1.3500.

So far, August has been favorable for the pair, with the price climbing more than 3% from the low of 1.3139, largely driven by a weaker US dollar. Stronger-than-expected UK GDP growth figures failed to negate the bearish head-and-shoulders pattern, leaving attention now on upcoming CPI inflation, S&P Global business PMIs, and retail sales. These releases could provide fresh insight into whether a pause in the BoE’s rate-cut cycle is possible in the coming months. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD edges above 1.1750 due to ECB-Fed policy divergence

EUR/USD has recovered its recent losses registered in the previous session, trading around 1.1760 during the Asian hours on Friday. Traders will likely observe Germany’s Manufacturing Purchasing Managers’ Index data later in the day.

GBP/USD gathers strength above 1.3450 on Fed rate cut bets, BoE's gradual policy path

The GBP/USD pair gathers strength to around 1.3480 during the early Asian session on Friday. Expectations of the US Federal Reserve rate cuts this year weigh on the US Dollar against the Pound Sterling. Philadelphia Fed President Anna Paulson is set to speak later on the weekend.

Gold climbs to near $4,350 on Fed rate cut bets, geopolitical risks

Gold price rises to near $4,345 during the early Asian session on Friday. Gold finished 2025 with a significant rally, achieving an annual gain of around 65%, its biggest annual gain since 1979. The rally of the precious metal is bolstered by the prospect of further US interest rate cuts in 2026 and safe-haven flows.

Bitcoin trades in compression as 2026 begins with structure still unresolved

BTC/USD remains locked in a two-way structure, with micro supply-and-demand levels guiding early-year price behaviour.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).