Pound Sterling Price News and Forecast: GBP/USD weakens to near 1.3685 early European session

FXStreet Team FXStreet

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling (GBP) edges lower against the US Dollar (USD) amid political risk in the United Kingdom (UK) and rising expectations of near-term Bank of England (BoE) rate cuts.

UK Prime Minister Keir Starmer faced a significant challenge to his leadership as Scottish Labour leader Anas Sarwar called on him to resign over the fallout from the Jeffrey Epstein scandal. Starmer continues fighting to shore up his position, saying that "after having fought so hard for the chance to change our country, I'm not prepared to walk away from my mandate and my responsibility to my country or to plunge us into chaos as others have done." Read more...

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average (EMA) at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300. However, the pair pulled back sharply from its January high of 1.3869 after the Bank of England (BoE) held rates at 3.75% in a dovish 5-4 vote split, with four Monetary Policy Committee members pushing for an immediate 25 basis point cut.

Monday's session saw a modest recovery, with price bouncing from Friday's close near 1.3600 to trade around 1.3695, forming a bullish daily candle that reclaimed ground above the 1.3690 level. This area aligns roughly with the late-January consolidation zone between 1.3690 and 1.3770 that previously acted as support before last week's breakdown. UK political uncertainty surrounding Prime Minister Starmer's leadership is adding a headwind, but the broader trend of higher highs and higher lows on the daily timeframe still holds above the 50 EMA. Read more...

GBP/USD jumps as China treasury rumors hit USD, UK politics cap gains

The Pound Sterling (GBP) posts solid gains versus the US Dollar (USD) on Monday as rumors emerged that China is asking to reduce exposure to US Treasuries, which weighed on the Greenback. Nevertheless, the pair remains capped by political turmoil in the United Kingdom (UK). At the time of writing, GBP/USD trades at 1.3659, up 0.41%.

Risk appetite is mixed as investors await the release of crucial economic data in the US. Last week’s short US government shutdown pushed the release of the January Nonfarm Payrolls and inflation figures to Wednesday and Friday, respectively. Read more...

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FXStreet Team

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