Pound Sterling Price News and Forecast: GBP/USD remains vulnerable

FXStreet Team FXStreet

GBP/USD rebounds from 1.2200 on improved risk appetite, UK GDP in focus

The GBP/USD pair has sensed buying interest after correcting to near the critical support of 1.2200. The asset is aiming to recapture its six-week high at 1.2293 as investors’ risk appetite has improved dramatically after a significant decline in the US inflation rate.

GBP/USD

Overview
Today last price	1.2211
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.2215

Trends
Daily SMA20	1.2066
Daily SMA50	1.2153
Daily SMA100	1.2445
Daily SMA200	1.2926

Levels
Previous Daily High	1.2277
Previous Daily Low	1.2065
Previous Weekly High	1.2294
Previous Weekly Low	1.2003
Previous Monthly High	1.2246
Previous Monthly Low	1.176
Daily Fibonacci 38.2%	1.2196
Daily Fibonacci 61.8%	1.2146
Daily Pivot Point S1	1.2094
Daily Pivot Point S2	1.1974
Daily Pivot Point S3	1.1883
Daily Pivot Point R1	1.2306
Daily Pivot Point R2	1.2397
Daily Pivot Point R3	1.2518

GBP/USD: Pound remains vulnerable, could break under 1.20 again

Despite the broad-based slide of the US dollar on Wednesday following the US CPI, analysts at Rabobank still see the GBP/USD vulnerable to the downside and warn it could drop back again under 1.20 on a one to three-month view.

EUR/USD continues to target 1.2000

EUR/USD builds on Monday’s optimism, edging closer to the key 1.2000 area while hitting tops last seen back in June 2021. The latest push higher reflects ongoing selling pressure on the US Dollar, with the broader risk environment still supportive and investors once again turning their attention to tariff-related risks emerging from the White House.

GBP/USD loses some momentum ahead of1.3800

GBP/USD continues to grind higher on Tuesday, climbing toward the 1.3800 handle and setting fresh multi-month highs as broad-based US Dollar weakness remains the dominant theme prior to Wednesday’s FOMC event.

Gold picks up pace, hovers around $5,100 zone

Gold is holding onto a positive tone, reclaiming the area near $5,100 per troy ounce and maintaining its uptrend well in place for yet another day on Tuesday. The yellow metal continues to draw support from a soft US Dollar, as well as lingering uncertainty around trade policy and wider geopolitical risks, all preceding the Fed’s interest rate decision.

Australia CPI expected to edge higher ahead of key RBA policy meeting

Australia will release the Consumer Price Index report on Wednesday, and it is expected to show inflation rose 3.6% year over year in December, slightly above the previous reading of 3.4%. The monthly CPI is foreseen at 0.7% after posting 0% in November.

Four problems of the US Dollar

The US Dollar Index returned to last year's lower bound, which we had not seen since 2022. The drivers are investment portfolio diversification, concerns about the US economic growth slowdown, rumours of FX interventions and active selling by carry-traders.

XRP price struggles below $2.00 despite steady ETF demand

Ripple (XRP) is trading around $1.88 at the time of writing on Tuesday, correcting from the previous day’s high of $1.95. The cross-border remittance token remains under immense pressure amid a weak technical structure.