Pound Sterling Price News and Forecast: GBP/USD remains weak near 1.2510

FXStreet Team FXStreet

GBP/USD weakens to near 1.2500 on BoE dovish bets for 2025

The GBP/USD pair remains on the defensive around 1.2510 on Thursday during the Asian session, pressured by the stronger US Dollar (USD) broadly. The prospect that the Federal Reserve will slow the easing cycle this year supports the Greenback against the Pound Sterling (GBP).

The Fed lowered the Federal Funds Rate to a range of 4.25% to 4.5% in its December meeting, down from its target range of 4.5% to 4.75%. Fed Chair Jerome Powell emphasised the need for caution on further rate reductions amid stubbornly high inflation. Powell said that the US central bankers anticipated a higher inflation outlook and fewer rate cuts next year. Fed officials pencilled in only two rate cuts in 2025, down from the four it had forecast in September. Read more...

GBP/USD Price Forecast: Tests nine-day EMA above descending channel near 1.2550

GBP/USD retraces its recent losses, trading around 1.2550 during the European hours on Tuesday. The daily chart analysis suggests a weakening bearish bias as the pair is positioned above the upper boundary of the descending channel pattern.

However, the 14-day Relative Strength Index (RSI) remains below the 50 level, suggesting a persistent bearish bias. Additionally, the GBP/USD pair is positioned below its nine- and 14-day Exponential Moving Averages (EMAs), suggesting a weaker short-term price momentum. A decisive break above these EMAs could indicate a shift from bearish to bullish bias. Read more...

GBP/USD holds gains near 1.2550, driven by a decline in US Treasury yields

GBP/USD retraces its recent losses from the previous session, trading around 1.2550 during the Asian hours on Tuesday. This upside of the pair could be attributed to the subdued US Dollar (USD) amid weaker US Treasury yields.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, remains subdued at around 108.00. The Greenback faced challenges as US Treasury bond yields depreciated by around 2% on Monday. 2-year and 10-year yields stood at 4.24% and 4.53%, respectively. Read more...

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EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.