GBP/USD has rebounded after hitting a low near 1.3000 earlier this week, now holding above 1.3100. The US economic calendar is light today, with no high-impact data releases expected.
British Pound Shows Strength Against Major Currencies This Week
The British Pound (GBP) has been the strongest against the Swiss Franc this week, as shown in the table below. Overall, GBP/USD has benefited from broad-based selling pressure on the US Dollar (USD) and an improved risk sentiment.
Softer-than-expected producer inflation data from the US has weighed on the USD, with markets now pricing in a higher probability of a 50 basis points rate cut by the Federal Reserve. This has boosted GBP/USD further.
Looking ahead, US economic data on Import Price Index, Export Price Index, and Consumer Sentiment Survey are unlikely to have a significant impact. As US stock index futures trade higher, GBP/USD may continue to rise heading into the weekend.
GBP/USD Technical Analysis and Forecast
Currently trading above 1.3130, GBP/USD faces key support at this level, with the 100-period and 200-period Simple Moving Averages (SMA) providing a cushion. A break above 1.3200 could see resistance at 1.3260, while a drop below 1.3130 may lead to support at 1.3110-1.3100 and 1.3040.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. It is influenced by monetary policy decisions from the Bank of England, economic data releases, and trade balance indicators.
Overall, GBP/USD is currently showing bullish momentum, supported by weakness in the US Dollar and positive market sentiment. Traders should keep an eye on key levels and upcoming economic data for further direction in the pair.