Pound Sterling Price News and Forecast: GBP/USD finds a floor at 1.3200 after Fed-induced sell-off

FXStreet Team FXStreet

GBP/USD finds a floor at 1.3200 after Fed-induced sell-off

The GBP/USD pair is consolidating around the 1.3200 level on Thursday, following significant losses in the previous session. The pair is now trading near its lowest point since April 2025, with selling pressure intensifying after the Federal Reserve cut interest rates by 25 basis points. While delivering the expected cut, Fed Chair Jerome Powell struck a hawkish note by stressing that further easing this year is not guaranteed, bolstering the US dollar.

The pound faces its own set of domestic headwinds. Mounting expectations of a Bank of England rate cut, combined with concerns over the upcoming November budget, are weighing on sentiment. During parliamentary hearings, Prime Minister Keir Starmer refused to rule out potential rises in income tax, national insurance, and VAT. Read more...

GBP/USD outlook: Extends steep decline on growing expectations for BoE rate cut

Cable hit three-month low on Wednesday, extending the steep bear-leg which emerged after strong upside rejection at daily cloud, into second consecutive week.

Fresh bears broke through important support provided by 200DMA (1.3239) and cracked 1.3200 level that unmasks key short-term support at 1.3141 (Aug 1 low (Fibo 38.2% of 1.2999/1.3788). 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 rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.