- GBP/USD trades at 1.2885, down 0.06%, after failing to sustain momentum above 1.2900.
- US labor market shows resilience, with jobless claims lower than expected at 221K.
- BoE remains cautious on rate cuts while the UK construction sector contracts to May 2020 levels.
- Traders eye US Nonfarm Payrolls data, expected to rise by 160K in February.
The rally in the Pound Sterling (GBP) stalled after sustaining three straight days of gains. It remains firmly below 1.2900 after hitting a year-to-date (YTD) peak of 1.2923. At the time of writing, the GBP/USD is trading at 1.2885 and registers minuscule losses of 0.06%.
Sterling holds near YTD peak but struggles for further gains
The market mood remains negative amid a trade war spurred by the United States (US), which imposed tariffs on imports from Canada, Mexico and China. Even though three of the largest US automakers experienced a one-month delay in tariffs on automobile imports from Mexico and Canada, investors are flocking toward safe-haven assets.
The US Department of Labor revealed that the labor market remains in good shape after releasing the Initial Jobless Claims for the week ending March 1. Claims rose by 221K, below estimates of 235K and last week’s 242K.
On Wednesday, the Federal Reserve (Fed) revealed in its Beige Book that economic activity rose slightly, employment nudged higher and prices increased. However, US President Donald Trump's trade policies keep businesses and households uncertain.
Other data showed the US trade deficits widened in January as companies front-loaded ahead of tariffs.
Across the pond, Bank of England (BoE) officials stated they would be very careful when easing policy, as they remain concerned about a possible reacceleration of inflation. In the meantime, S&P Global Construction PMI contracted in February, hitting its weakest level since May 2020.
Ahead this week, GBP/USD traders are eyeing the release of US Nonfarm Payrolls for February, which are expected to rise by 160K, up from 143K in January.
GBP/USD Price Forecast: Technical outlook
Technically speaking, the GBP/USD pair should continue to aim higher after clearing the 200-day Simple Moving Average (SMA) at 1.2786 and surpassing the latest cycle high at 1.2811, the December 6 high. If the pair closes on a daily basis above 1.2900, a move towards 1.3000 is on the cards.
Otherwise, sellers could push the exchange rate to 1.2811, the latest resistance-turned-support, before challenging 1.2800.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.35% | 0.10% | -0.64% | -0.41% | -0.17% | -0.28% | -0.62% | |
| EUR | 0.35% | 0.46% | -0.22% | -0.06% | 0.19% | 0.07% | -0.27% | |
| GBP | -0.10% | -0.46% | -0.67% | -0.51% | -0.26% | -0.37% | -0.69% | |
| JPY | 0.64% | 0.22% | 0.67% | 0.14% | 0.40% | 0.25% | -0.04% | |
| CAD | 0.41% | 0.06% | 0.51% | -0.14% | 0.26% | 0.13% | -0.19% | |
| AUD | 0.17% | -0.19% | 0.26% | -0.40% | -0.26% | -0.12% | -0.44% | |
| NZD | 0.28% | -0.07% | 0.37% | -0.25% | -0.13% | 0.12% | -0.31% | |
| CHF | 0.62% | 0.27% | 0.69% | 0.04% | 0.19% | 0.44% | 0.31% |
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).
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 drops below 1.1400 after Germany and EU PMI data
EUR/USD struggles to hold its ground and trades below 1.1400 in the European session on Wednesday. PMI data from Germany and the Eurozone showed that the business activity in the service sector contracted in April. Markets await comments from central bankers and US PMI data.
GBP/USD stays weak near 1.3300 after disappointing UK data
GBP/USD stays under bearish pressure near 1.3300 in the European session on Wednesday. Pound Sterling struggles to find demand following the weaker-than-forecast April PMI data from the UK. BoE Governor Bailey will speak later in the day and the US economic calendar will feature PMI reports.
Gold price touches fresh weekly low, below $3,300 amid easing US-China trade tensions
Gold price extends its steady intraday descent through the first half of the European session and momentarily slips below the $3,300 mark in the last hour as the upbeat market mood conditions undermine demand for safe-haven assets.
Dogecoin lead double-digit gains across meme coins, with Shiba Inu, PEPE and BONK skyrocketing to new monthly highs
Top meme coins Dogecoin, Shiba Inu, PEPE and BONK lead the meme coin sector with double-digit gains on Wednesday following the crypto market recovery.
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.