Created
: 2025.02.10
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD Price Forecast: Hovers around 1.2400; seems vulnerable while below 50-day SMA
World FX news
Breaking news
GBP/USD Price Forecast: Hovers around 1.2400; seems vulnerable while below 50-day SMA
New
2025.02.10 14:15
2025.02.10 14:15
2025.02.10 14:15
- GBP/USD struggles to capitalize on intraday uptick amid a modest USD strength.
- The divergent Fed-BoE outlook further contributes to capping the currency pair.
- The setup seems tilted in favor of bears and supports prospects for deeper losses.
The GBP/USD pair rebounds a few pips from the Asian session low and currently trades around the 1.2400 round-figure mark, nearly unchanged for the day. The upside, however, remains capped in the wake of a modest US Dollar (USD) strength, which, in turn, warrants some caution for bullish traders.
US President Donald Trump's fresh tariff threats boost demand for the traditional safe-haven Greenback. Meanwhile, the upbeat US employment details released on Friday, along with expectations that Trump's protectionist policies would reignite inflation, should allow the Federal Reserve (Fed) to hold rates steady and lend additional support to the USD. Apart from this, the Bank of England's (BoE) gloomy outlook should contribute to capping the GBP/USD pair.
Even from a technical perspective, the recent repeated failures near the 50-day Simple Moving Average (SMA) suggest that the path of least resistance for the GBP/USD pair is to the downside. Hence, any subsequent move up could be seen as a selling opportunity and remain capped near the 1.2500 psychological mark. The latter should act as a key pivotal point for short-term traders, which if cleared decisively should pave the way for additional near-term gains.
The GBP/USD pair might then accelerate the positive move towards the 1.2575-1.2580 region en route to the 1.2600 round figure. The momentum could extend further towards the 1.2645-1.2650 intermediate hurdle, above which spot prices could aim to challenge the 100-day SMA, currently pegged near the 1.2715-1.2720 region.
On the flip side, weakness below the 1.2375-1.2370 immediate support could make the GBP/USD pair vulnerable to weaken further below the 1.2300 round figure, towards testing last week's swing low, around mid-1.2200s. Some follow-through selling should pave the way for a fall toward the next relevant support near the 1.2175 region.
GBP/USD daily chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.02.10
Related articles
Canadian Dollar recovery grinds away, Loonie finds fresh eight-week high
2025.02.13 04:19Forex Today: Further US inflation gauges should rule the sentiment
2025.02.13 04:04BoC Meeting Minutes show Canadian policymakers are awaiting signs of tariff inflation
2025.02.13 03:48US Dollar turns down despite hot CPI
2025.02.13 03:38Mexican Peso defies US inflation shock, extends gains
2025.02.13 02:55EUR/USD reverses early declines, climbs back over 1.04
2025.02.13 02:48
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Gold price steadies as Powell stands firm on restrictive policy
Gold price recovered some ground late during Wednesday's North American session.
New
2025.02.13 05:51Canadian Dollar recovery grinds away, Loonie finds fresh eight-week high
The Canadian Dollar (CAD) briefly tested a new eight-week peak on Wednesday, pushing USD/CAD to its lowest levels since mid-December.
New
2025.02.13 04:19Forex Today: Further US inflation gauges should rule the sentiment
The US Dollar succumbed to the late selling pressure and faded the post-CPI move to weekly highs, while investors kept digesting Powell's testimonies and sticky consumer prices in January.
New
2025.02.13 04:04BoC Meeting Minutes show Canadian policymakers are awaiting signs of tariff inflation
The Bank of Canada released its latest Meeting Minutes on Wednesday.
New
2025.02.13 03:48US Dollar turns down despite hot CPI
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against a basket of currencies, initially climbed after January's hotter-than-expected Consumer Price Index (CPI) data but then reversed course.
New
2025.02.13 03:38Mexican Peso defies US inflation shock, extends gains
The Mexican Peso (MXN) extended its gains against the US Dollar (USD) for the second consecutive day, unfazed by the jump in inflation in the United States (US), preventing the Federal Reserve (Fed) from easing policy.
New
2025.02.13 02:55EUR/USD reverses early declines, climbs back over 1.04
EUR/USD clawed back chart paper on Wednesday, rebounding from early losses to reclaim the 1.0400 handle as markets shake off a fresh batch of US inflation figures that broadly accelerated in January.
New
2025.02.13 02:48Fed's Bostic: labor is good, but inflation still needs monitoring
Federal Reserve (Fed) Bank of Atlanta President added his own soundbites to the noise machine of Fed headlines on Wednesday, noting that despite still-strong labor figures, US inflation continues to remain a sticking point, especially after US Consumer Price Index (CPI) inflation figures ticked higher in January.
New
2025.02.13 02:33Dow Jones Industrial Average tumbles as US inflation kicks higher
The Dow Jones Industrial Average (DJIA) tumbled on Wednesday,dropping over 400 points at its lowest and dipping into 44090.
New
2025.02.13 02:06BoE's Greene: hesitant to say a trade war is helpful for inflation
Bank of England (BoE) policymaker Megan Greene noted on Wednesday that a cautious approach is probably the best approach when it comes to easing monetary policy.
New
2025.02.13 01:21Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
