Pound Sterling Price News and Forecast: GBP/USD gathers strength around 1.3635 early European session

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GBP/USD Price Forecast: Bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product (GDP) for the fourth quarter (Q4) will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1. In case of a stronger-than-expected outcome, this could boost the Cable against the US Dollar (USD).

On the other hand, traders trimmed bets for a March Federal Reserve (Fed) rate cut after the upbeat US Nonfarm Payrolls (NFP) report. This, in turn, might cap the upside for the major pair. The US NFP rose by 130,000 in January, better than the estimates of 70,000, according to the Bureau of Labor Statistics on Wednesday. The Unemployment Rate fell to 4.3% in January from 4.4% in December, below the market consensus of 4.4%. Read more...

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England (BoE) dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions. The BoE held rates unchanged at its February meeting but surprised markets with a 5-4 Monetary Policy Committee (MPC) vote split, with four members backing an immediate 25 basis point cut, a more dovish outcome than expected.

Governor Andrew Bailey noted that inflation is set to reach the 2% target sooner than anticipated, and markets are now pricing in 50 basis points of additional easing in 2026. UK political risk flared as Scottish Labour leader Anas Sarwar called for Prime Minister Keir Starmer to step down amid the Peter Mandelson scandal, though cabinet support has since steadied the situation. Read more...

GBP/USD trims gains after blowout US NFP temper Fed cut bets

The Pound Sterling (GBP) advances agains the US Dollar (USD) during the North American session on Wednesday, but retreated from daily highs of 1.3712 following a stronger-than-expected jobs report in the US. At the time of writing, GBP/USD trades at 1.3655, up 0.10%.

Nonfarm Payrolls in January were stronger than expected, rising by 130K, exceeding forecasts of 70K, crushing December’s 48K downward revision from 50K, while the Unemployment Rate dipped from 4.4% to 4.3%, beneath estimates. Even though the data was solid, the recent University of Michigan Consumer Sentiment survey showed that American households had grown worried about the outlook of the job market. Read more...

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