- The GBP/USD falls but is maintained above the key psychological level of 1,2900 amid the continuous uncertainty.
- The economy of the United Kingdom contracted 0.1% unexpectedly in January, increasing bets on future rates cuts from the Bank of England.
- The consumer inflation expectations in the US are triggered, complicating the Fed decisions before the critical implementation of tariffs in the US on April 2.
The sterling pound records consecutive bearish days, falling around 0.14% on Friday against the dollar after the revelation of economic data of the United Kingdom who showed that the Gross Domestic Product (GDP) contracted. In spite of this, the GBP/USD quotes above the 1,2900 figure, prepared to end the day near that level.
GBP/USD pressed after the GDP failure of the United Kingdom, while the growing inflation expectations in the US complicate the next movement of the Fed
Recently, the data of the University of Michigan (UOM) showed that the feeling of the consumer in March deteriorated, from 64.7 to 57.9, below the forecast of 63.1, as the survey showed. Notably, inflation expectations jumped, with Americans seeing inflation to 12 months increase from 4.3% to 4.9%. For a period of five years, consumers saw prices by 3.9%, rising from 3.5%.
GBP/USD operators have their eyes on the bonanza of the central banks next week, starting with the Federal Reserve. Last Friday, the president of the FED, Jerome Powell, revealed that “market measures of inflation expectations have increased, driven by tariffs.”
Therefore, today’s reading could prevent the Fed from relaxing the policy, since the US president Donald Trump will impose reciprocal tariffs on April 2.
On the other side of the ocean, the British economy contracted unexpectedly by -0.1% monthly in January, failing in the expansion of 0.1% estimated by analysts, behind the data, the swaps of interest rates valued 56 basic points of feat cuts by the Bank of England (BOE) in 2025, which is expected to keep the rates next Thursday.
Next week, the United Kingdom data will include the Employment Report, the PMI Preliminary Global S&P and the BOE interest rates decision. For the US, operators will observe retail sales, housing data, Fed monetary policy decisions and economic projections.
GBP/USD price forecast: technical perspective
In spite of going back to 1,2900 and reaching a minimum of two days of 1,2916, the operators seem reluctant to push the GBP/USD down, after the torque exceeds the simple mobile average (SMA) of 200 days in 1,2791, on March 5. If buyers exceed 1,2950, ​​the next resistance would be 1.3000. On the contrary, a fall below 1,2900 will expose the minimum of the current week of 1,2860, which is ahead of the 200 -day SMA.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.29% | 0.14% | 0.45% | -0.34% | -0.63% | -0.86% | 0.27% | |
| EUR | 0.29% | 0.47% | 0.73% | -0.04% | -0.35% | -0.58% | 0.65% | |
| GBP | -0.14% | -0.47% | 0.25% | -0.53% | -0.81% | -1.03% | 0.18% | |
| JPY | -0.45% | -0.73% | -0.25% | -0.79% | -1.07% | -1.29% | -0.07% | |
| CAD | 0.34% | 0.04% | 0.53% | 0.79% | -0.27% | -0.52% | 0.70% | |
| Aud | 0.63% | 0.35% | 0.81% | 1.07% | 0.27% | -0.23% | 0.94% | |
| NZD | 0.86% | 0.58% | 1.03% | 1.29% | 0.52% | 0.23% | 1.23% | |
| CHF | -0.27% | -0.65% | -0.18% | 0.07% | -0.70% | -0.94% | -1.23% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
