- GBP/USD builds on last week's gains, rises toward 1.3200.
- Pound Sterling benefits from improving risk mood and persistent USD weakness.
- The technical picture points to overbought conditions for the pair.
After rising nearly 1% on Friday and ending the previous week with a 1.5% gain, GBP/USD preserves its bullish momentum on Monday and trades above 1.3150. The pair's near-term technical outlook points to overbought conditions but investors could refrain from betting on a deep correction, given the broad-based selling pressure surrounding the US Dollar (USD).
British Pound PRICE Last 7 days
The table below shows the percentage change of British Pound (GBP) against listed major currencies last 7 days. British Pound was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -3.76% | -2.17% | -1.82% | -2.98% | -4.70% | -5.20% | -4.50% | |
| EUR | 3.76% | 1.94% | 2.64% | 1.44% | -1.03% | -0.86% | -0.16% | |
| GBP | 2.17% | -1.94% | -0.60% | -0.49% | -2.92% | -2.77% | -2.06% | |
| JPY | 1.82% | -2.64% | 0.60% | -1.14% | -1.98% | -2.23% | -2.38% | |
| CAD | 2.98% | -1.44% | 0.49% | 1.14% | -2.11% | -2.29% | -1.84% | |
| AUD | 4.70% | 1.03% | 2.92% | 1.98% | 2.11% | 0.15% | 0.89% | |
| NZD | 5.20% | 0.86% | 2.77% | 2.23% | 2.29% | -0.15% | 0.73% | |
| CHF | 4.50% | 0.16% | 2.06% | 2.38% | 1.84% | -0.89% | -0.73% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
The USD Index, which tracks the USD's valuation against a basket of six major currencies, lost 3% last week as the deepening US-China trade conflict fed into fears over an economic downturn in the US.
Late Friday, US President Donald Trump's administration granted some technology imports, including smartphones, computers, laptops and disc drives, exemptions from the steep 125% additional tariffs imposed on China. Trump clarified over the weekend that these products will still face the 20% existing tariffs, which were imposed initially because of the fentanyl crisis in the US. Meanwhile, US Commerce Secretary Howard Lutnick said that technology imports, alongside semiconductors, will face separate new levies within the next two months.
This development helped the USD find a foothold at the beginning of the week but its positive impact on the currency remained short-lived.
In the meantime, US stock index futures decisively higher on Monday, with Nasdaq Futures rising nearly 2% on the day.
In the absence of high-impact data releases, the risk mood could continue to drive GBP/USD's action. A bullish action in Wall Street after the opening bell could help the pair hold its ground. On Tuesday, the UK's Office for National Statistics will publish the employment report for February.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart rises toward 80, reflecting overbought conditions for GBP/USD.
GBP/USD could face immediate resistance at 1.3200 (static level) ahead of 1.3270 (static level) and 1.3300 (round level). On the downside, first support could be spotted at 1.3150 (static level) before 1.3100 (round level, static level) and 1.3040 (static level).
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD extends gains toward 1.1400 after German sentiment data
EUR/USD stretches higher toward 1.1400 in the European session after upbeat German business sentiment data. The pair's solid uptick could also be linked to the latest leg down in the US Dollar as concerns re-emerge over Trump's tariff plans with China and Japan.
GBP/USD holds firm near 1.3300 on intense US Dollar weakness
GBP/USD rises further to test 1.3400 in European trading on Thursday, snapping a two-day losing streak. Uncertainty over US President Donald Trump's tariff plans returns and sends the US Dollar sharply lower across the board, suporting the pair. Mid-tier US data awaited.
Gold price pushes back at selling pressure with Trump putting reciprocal tariffs back on the table
Gold price recovers from a two-day decline and traders around $3,335 now on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday. President Trump released more comments from the Oval Office late Wednesday signaling that China may receive a new tariff rate in the next “two to three weeks”
Bitcoin Price corrects as increased profit-taking offsets positive market sentiment
Bitcoin (BTC) is facing a slight correction, trading around $92,000 at the time of writing on Thursday after rallying 8.55% so far this week. Institutional demand remained strong as US spot Exchange Traded Funds (ETFs) recorded an inflow of $916.91 million on Wednesday.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.