Pound Sterling Price News and Forecast: GBP/USD testing breakout of a rising channel pattern below 1.2550

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could extend correction toward 1.2500

GBP/USD has started the new week under bearish pressure and declined below 1.2550 after having touched its highest level in nearly a year 1.2584 on Friday. 1.2500 aligns as the next key support for the pair but market participants could opt to remain on the sidelines ahead of the Federal Reserve's policy announcements on Wednesday.

In the absence of high-impact fundamental drivers, GBP/USD has capitalized on month-end flows and registered impressive gains ahead of the weekend. Early Monday, the US Dollar stays resilient against its rivals support by recovering US Treasury bond yields. Read more ...

GBP/USD Price Analysis: Testing breakout of a rising channel pattern below 1.2550

The GBP/USD pair is showing signs of exhaustion in the upside momentum after failing to extend the upside above 1.2583. The Cable has turned sideways around 1.2560 as investors are preparing for monetary policy by the Federal Reserve (Fed), which is scheduled for Wednesday.

The risk profile is favoring risk-sensitive assets as S&P500 futures are having minimal gains after a bullish Friday. Investors were gung-ho for United States equities after a solid quarterly performance from tech-savvy stocks. Read more ...

GBP/USD drops to fresh daily low amid stronger USD, holds above 1.2500 mark

The GBP/USD pair comes under some selling pressure on the first day of a new week and erodes a part of Friday's strong gains to the 1.2580-1.2585 region, or its highest level since June 2022. Spot prices extend the steady intraday descent through the early part of the European session and drop to a fresh daily low, around the 1.2520 area in the last hour.

A combination of supporting factors assists the US Dollar (USD) to gain positive traction for the third successive day, which, in turn, is seen dragging the GBP/USD pair lower. The prospects of the Federal Reserve (Fed) raising interest rates by another 25 basis points (bps) at the end of a two-day meeting on Wednesday, along with looming recession risks, continue to act as a tailwind for the safe-haven Greenback.

GBP/USD

Overview
Today last price	1.2532
Today Daily Change	-0.0037
Today Daily Change %	-0.29
Today daily open	1.2569

Trends
Daily SMA20	1.2451
Daily SMA50	1.2251
Daily SMA100	1.2212
Daily SMA200	1.194

Levels
Previous Daily High	1.2584
Previous Daily Low	1.2446
Previous Weekly High	1.2584
Previous Weekly Low	1.2387
Previous Monthly High	1.2584
Previous Monthly Low	1.2275
Daily Fibonacci 38.2%	1.2531
Daily Fibonacci 61.8%	1.2499
Daily Pivot Point S1	1.2482
Daily Pivot Point S2	1.2396
Daily Pivot Point S3	1.2345
Daily Pivot Point R1	1.262
Daily Pivot Point R2	1.267
Daily Pivot Point R3	1.2757

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.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

XRP surged 72%, but is the rally really about XRP?

Ripple (XRP) surged more than 72% in less than a week, its strongest rally since July 2025, as cryptocurrency prices broadly broke out. But the move has a problem: it may have little to do with XRP itself. The token's near-term rally appears to have been driven largely by a broader liquidity shift after the US Treasury expanded long-end bond buybacks, pulling yields lower and lifting risk assets.

Convulsion in credit markets

The United States government just posted a $432.3 billion deficit for July, the largest monthly shortfall since March of 2021. That single burst of red ink pushed the yeartodate deficit to $1.8 trillion, with two months still remaining in fiscal 2026. At this pace, Washington will soon wax nostalgic for the “good old days” when annual deficits were only $2 trillion.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.