- GBP/USD falls, but persists above the key psychological level of 1.2900 in the midst of constant uncertainty.
- In January, the economy in Great Britain unexpectedly shrunk by 0.1%, raising plants for future interest rates of the Bank of England.
- The expectations of consumer inflation in the USA, complicating the FED decisions before the critical implementation of the US tariff on April 2.
The Sterling (GBP) pound registers bears, falling about 0.14% on Friday compared to economic data from Great Britain (Great Britain), revealed that the gross domestic product (GDP) has contracted. Despite this, GBP/USD is trading above 1.2900, ready to finish the day near this level.
GBP/USD Pressure after the reign of GDP in Great Britain, at the same time growing inflation expectations of the USA complicates the next Fed movement
Recently, data from the University of Michigan (UOM) showed that consumer moods in March deteriorated from 64.7 to 57.9, below the forecast 63.1. In particular, inflation expectations have increased, and Americans record 12-month inflation from 4.3% to 4.9%. Within five years, consumers saw prices of 3.9%, compared to 3.5%.
The eyes of GBP/USD traders are located in Bonanza Central Bank next week, starting with the Federal Reserve (FED). Last Friday, the chairman of the Fed, Jerome Powell, revealed that “market means of inflation expectations increased, driven by tariffs.”
Therefore, on Friday, reading may prevent the fed to soften the policy, because US President Donald Trump will introduce mutual tariffs on April 2.
On the other side of the pond, the British economy unexpectedly shrunk in January -0.1% Mom, missing 0.1% expansion estimated by analysts. After the data rate swap data in 56 base points of interest rates by Bank of England (Boe) in 2025, which is to keep the rates next Thursday.
Next week, the data from Great Britain will include a work report, S&P Global Flash PMIS and a decision about the Boe interest rate. For the USA, traders will look at retail sales, housing data, Fed monetary policy decisions and economic forecasts.
GBP/USD price forecast: Technical perspectives
Despite the withdrawal in the direction of 1.2900 and reaching the lowest level of 1.2916, traders seem reluctant to push GBP/USD lower after the pair cleaned the 200-day straight movable average (SMA) at 1.2791 on March 5. If the buyers cleaned 1.2950, ​​the next resistance would be 1.3000. And vice versa, a drop below 1,2900 will reveal the lowest week of 1.2860, which will overtake the 200-day SMA.
The price of the British pound today
The table below shows a percentage change in the British pound (GBP) in relation to the main currencies. The British pound was the strongest against Japanese yen.
| USD | EUR | GBP | JPy | BOOR | 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% | |
| BOOR | 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 percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose a British pound on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent GBP (base)/USD (quote).
