GBPUSD below 1.3485 which caused a further drop toward 1.3340-80. As we see over the chart, the market is facing a daily trend support around 1.3280 which could lead to a rebound with resistance around 1.3630.
Hotter April CPI combined with diplomatic developments from the Trump-Xi summit supported the US Dollar. EUR/USD faces pressure near $1.170 while GBP/USD defends rising channel floor at $1.351.
UK GDP grew by 0.6% in the first quarter of 2026, notably above the revised 0.2% reading recorded in the fourth quarter of 2025. The main contribution came from the services sector, which expanded by 0.8%.
Pound Sterling Price News and Forecast: GBP/USD attracts some sellers to around 1.3365
GBP/USD moved sharply lower on Thursday, validating the downside wedge risk highlighted earlier in the week as sterling finally starts reacting negatively to intensifying political turmoil in Britain. What had looked like a curious divergence between deteriorating UK political fundamentals and resilient pound price action now appears to be correcting rapidly, compounded by a simultaneous breakout in the dollar.
British pound technical outlook turns cautious as key resistance holds and downside risks build, according to Michael Boutros, Senior Market Analyst at FOREX.com. He highlights the failure at a major Fibonacci retracement, emerging reversal signals, and critical support levels now coming into focus.
The US dollar continues to move on the latest moves in the interest rate markets in the USA.
GBP/USD held at 1.3528 on Thursday following an overnight decline. The pound remains under pressure, close to its lowest levels since late April, amid media reports of a potential leadership contest within the ruling party.
April CPI hotter than expected has given the Dollar fresh support by cooling rate-cut optimism. DXY consolidates near $98.50, EUR/USD holds $1.171 trendline, and GBP/USD defends $1.351 channel floor.
British Pound: Downside risks linger against US Dollar – UOB
Pound Sterling Price News and Forecast: GBP/USD steadies awaiting preliminary Q1 UK GDP
Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 1.3580. There was a sharp decline below 1.3550 and the 100 simple moving average (red, 4-hour).