GBP/USD Price Forecast: Remains above the 9-day EMA near 1.3450
The GBP/USD pair rose on the first day of the year, trading around the 1.3470 level during Asian business hours on Friday. Technical analysis on the daily chart indicates a weak bullish bias, as the pair is still slightly below the lower border of the ascending channel pattern.
The nine-day Exponential Moving Average (EMA) is rising and standing above the 50-day EMA, with the spot price holding above both and maintaining an upward slope. The slope of the 50-day EMA is positive, supporting the uptrend. Short-term trend dynamics remain supportive, as the 9-day moving average continues to lead the 50-day moving average, and the first price is respected on pullbacks. A moving average formation would keep the upside favored while the average rises in the medium term. Read more…
GBP/USD gathers strength above 1.3450 on Fed rate cut bets and gradual Bank of England policy path
The GBP/USD pair is gathering strength to around 1.3480 during the early Asian session on Friday. Expectations of interest rate cuts by the US Federal Reserve (Fed) this year are weighing on the US dollar (USD) against the British pound (GBP). Philadelphia Fed President Anna Paulson is scheduled to speak later over the weekend.
The dollar ended 2025 with its biggest annual decline in eight years. With interest rates expected to be cut at least twice this year, the Fed’s policy path is deviating from the UK, reducing the appeal of the US dollar. Financial markets expect a roughly 15.0% chance that the Federal Reserve will cut interest rates at its next meeting in January, according to the CME FedWatch tool. Read more…
