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...

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 bounces toward 1.1750 as US Dollar loses strength

EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.

GBP/USD nears 1.3500, holds within familiar levels

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.

Gold trims intraday gains, approaches $4,300

Gold retreated sharply from the $4,400 area and trades flat for the day in the $4,320 price zone. Choppy trading conditions exacerbated the intraday decline, although XAU/USD bearish case is out of the picture, considering growing expectations for a dovish Fed and persistent geopolitical tensions.

Breaking: US Trump speaks about Venezuelan President Maduro's capture

United States (US) President Donald Trump gave a press conference at his residence in Mar-a-Lago. Trump confirmed the capture of Venezuelan President Nicolás Maduro and his wife: “Maduro and his wife both will face US justice,” Trump said, adding the US will be running Venezuela until they can do a safe, proper, and judicious transition.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).