GBP/USD retreats below 1.3000 after hitting 4-month high amid Fed, BoE uncertainty


  • GBP/USD slips to 1.2975, down 0.12%, after touching 1.3000, its highest level in four and a half months.
  • US Industrial Production was strong but was offset by weaker housing data and Trump’s renewed trade policies.
  • BoE and Fed policy decisions loom, with markets pricing in rate cuts later in the year for both central banks.

The Pound Sterling (GBP) is retreating during the North American session against the US Dollar (USD) after hitting a four-and-a-half-month high at 1.3000 before trimming earlier gains. At the time of writing, the GBP/USD trades at 1.2975, down 0.12%.

Pound trims gains as traders brace for central bank decisions

Economic data continues to be overlooked as traders digest United States (US) President Donald Trump's protectionist policies aimed at reducing the trade deficit.

Earlier, US Industrial Production in February expanded 0.7% MoM, exceeding estimates of 0.2% and January’s 0.3% print, boosted by motor vehicles. Housing data was mixed, with Building Permits in February falling 1.2% from 1.473 million to 1.456 million, while Housing Starts for the same period rose 11.2% from 1.35 million to 1.501 million.

Aside from this, risk appetite deteriorates as investors brace for the Federal Reserve (Fed) monetary policy. Most economists expect the Fed to hold rates, though it is unclear whether they will adopt a dovish or hawkish stance on their forecasts in the Summary of Economic Projections (SEP).

Across the pond, the Bank of England (BoE) is also expected to keep the Bank Rate unchanged on Thursday, with market participants pricing in an 89% chance of no change. For the full year, traders expect 54 basis points (bps) of easing.

In the meantime, the Organization for Economic Cooperation and Development (OECD) updated its forecasts for the United Kingdom (UK). The OECD expects the economy to grow 1.4%, down from its December forecast of 1.7%.

GBP/USD Price Forecast: Technical outlook

GBP/USD remains upward biased trading near the year-to-date (YTD) peaks around 1.3000, though the rally has lost some steam, with the pair consolidating around the 1.2900 – 1.3000 range. The Relative Strength Index (RSI) hovers near overbought territory, an indication that buyers lack the strength to push prices higher. Therefore, a dip is likely, with bulls expected to defend the March 17 low of 1.2911.

Conversely, a decisive breach of the 1.3000 would expose the November 6 swing high at 1.3047.

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 Australian Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.04% 0.08% 0.22% 0.15% 0.45% 0.17% -0.32%
EUR 0.04%   0.11% 0.26% 0.17% 0.48% 0.20% -0.29%
GBP -0.08% -0.11%   0.14% 0.07% 0.37% 0.09% -0.42%
JPY -0.22% -0.26% -0.14%   -0.08% 0.22% -0.08% -0.57%
CAD -0.15% -0.17% -0.07% 0.08%   0.31% 0.03% -0.49%
AUD -0.45% -0.48% -0.37% -0.22% -0.31%   -0.28% -0.79%
NZD -0.17% -0.20% -0.09% 0.08% -0.03% 0.28%   -0.51%
CHF 0.32% 0.29% 0.42% 0.57% 0.49% 0.79% 0.51%  

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).

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD faces the next up barrier around 0.6400

AUD/USD faces the next up barrier around 0.6400

AUD/USD extended its decline from Tuesday, slipping to two-day lows around 0.6320 on the back of the US Dollar’s rebound, all ahead of the release of the Australian jobs report.

AUD/USD News
EUR/USD: Further advances remain in the pipeline

EUR/USD: Further advances remain in the pipeline

EUR/USD came under pressure in response to the marked bounce in the US Dollar, reversing three daily gains in a row after the Federal Reserve left the door open to two rate cuts this year.

EUR/USD News
Gold remains supported by safe haven demand, Fed rate cuts

Gold remains supported by safe haven demand, Fed rate cuts

Prices of Gold rose further and surpassed the $3,050 mark per troy ounce, hitting an all-time high, after the Fed kept its interest rates unchanged at its meeting on Wednesday.

Gold News
Bitcoin blunders or breakthrough? – Wave-C’s final leg unfolding

Bitcoin blunders or breakthrough? – Wave-C’s final leg unfolding

In our last update as of 7th Feb 2025, Bitcoin struggled to hold 100K, staying in the 94K–100K range for most of February 2025 as shown in the yellow box—except for a sharp breakdown in the final week.

Read more
Tariff wars are stories that usually end badly

Tariff wars are stories that usually end badly

In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.

Read more
The Best brokers to trade EUR/USD

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025