Pound Sterling Price News and Forecast: GBP/USD hampered by UK growth prospects

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling fails to clear important hurdle

Despite the renewed US Dollar (USD) strength on Wednesday, GBP/USD managed to close in positive territory on Wednesday as hawkish Bank of England (BoE) bets after hot UK inflation data helped Pound Sterling stay resilient against its rivals. The pair, however, has lost its traction after having met resistance near 1.2480 and gone into a consolidation phase.

Early Thursday, US stock index futures trade deep in negative territory amid heavy losses witnessed in big tech stocks following disappointing earnings figures. As investors struggle to find the next fundamental driver, the market mood could drive the pair's action in the second half of the day. A negative opening in Wall Street accompanied by a flight to safety could support the USD and weigh on GBP/USD and vice versa. Read more ...

GBP/USD hampered by UK growth prospects

The IMF has warned that the UK economy could contract by 0.3% in 2023 and expand just 1% in 2024. The government disagrees, with Hunt saying that the UK will "beat the IMF's dismal growth forecasts."

The UK economy did grow in the final quarter of 2022, but only by 0.1%. Early indications point to another 0.1% growth in Q1. A growing economy requires credit, but with the Bank of England continuing to raise interest rates, credit conditions are getting tougher. This makes a period of contraction this year more likely. Read more ...

GBP/USD trades with modest losses below mid-1.2400s, downside potential seems limited

The GBP/USD pair comes under some selling pressure on Thursday and retreats further from the weekly high, around the 1.2470-1.2475 area touched the previous day. The pair remains on the defensive through the early part of the European session and is currently placed near the daily low, around the 1.2420 region.

A combination of factors continues to act as a tailwind for the US Dollar (USD), which, in turn, is seen exerting some downward pressure on the GBP/USD pair. The prospects for further policy tightening by the Federal Reserve (Fed), along with a weaker rise sentiment, lend some support to the safe-haven Greenback. That said, rising bets for an additional interest rate hike by the Bank of England (BoE) might hold back bearish traders from placing aggressive bets and help limit losses for the major. Read more ...

GBP/USD

Overview
Today last price	1.2428
Today Daily Change	-0.0012
Today Daily Change %	-0.10
Today daily open	1.244

Trends
Daily SMA20	1.2394
Daily SMA50	1.2195
Daily SMA100	1.2194
Daily SMA200	1.1921

Levels
Previous Daily High	1.2474
Previous Daily Low	1.2392
Previous Weekly High	1.2546
Previous Weekly Low	1.2344
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2443
Daily Fibonacci 61.8%	1.2424
Daily Pivot Point S1	1.2397
Daily Pivot Point S2	1.2354
Daily Pivot Point S3	1.2315
Daily Pivot Point R1	1.2478
Daily Pivot Point R2	1.2517
Daily Pivot Point R3	1.256

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY eases from two-week top, hovers near 158.50 amid looming intervention risk

USD/JPY edges lower during the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the currency pair. The downside, however, seems limited as the US Dollar stands firm near its highest level since April 2025, bolstered by the hawkish Fed and geopolitical uncertainties.

Gold struggles above $4.150 as bullish USD and elevated bond yields weigh

Gold remains depressed during the Asian session on Tuesday as elevated US Treasury yields and a hawkish Fed keep the US Dollar near its highest level since April 2025. Adding to this, persistent geopolitical uncertainties stemming from Middle East conflicts continue to underpin the safe-haven buck, which, in turn, is seen as weighing on the bullion. Traders now look to US inflation figures for some impetus ahead of Fed Chair Kevin Warsh's appearance on Friday.

Bitcoin shows bottoming signs despite recent macro pressures

Bitcoin remained range-bound above $82,000 on Monday as upcoming US economic data and onchain indicators weigh on market sentiment. Crypto trading firm QCP Group stated in its Monday report that Bitcoin has maintained a firmer footing a year after the market’s largest single-day liquidation event.

Earnings preview US and Europe: Can the stock market rally continue?

Stocks have been remarkably resilient this year. They have navigated geopolitical turmoil, an energy price spike and surging global bond yields which is rapidly pushing up the cost of borrowing. US blue chip stocks are now in their 4th year of a bull market, however, they now face their toughest test of Q4 so far, the latest earnings updates.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?