GBP/USD slips as risk aversion, sticky UK inflation lifts USD
GBP/USD: Sticky UK inflation sustains BoE premium – BBH
The GBP/USD forex pair has displayed notable volatility over the last four trading sessions, reversing some of the sterling's earlier gains and trading in a relatively tight range around 1.3400–1.3480. So why the pound, which had shown strength earlier in the month, now experiencing renewed swings against the US dollar?
The US Dollar Index (DXY) consolidates near 99.30 as safe-haven demand softens. Will Durable Goods data spark a breakout or pull the Greenback toward 98.89 support?
The market managed to rebound after printing a low of 1.3217 two weeks ago. As we see from the previous chart, prices managed to meet the target of 1.3460-80 which could lead to a correction.
GBPUSD hits resistance The pound remained upbeat after its bullish rally stalled. After jumping over 150 pips in recent sessions, prices entered a consolidation phase.
Data from the ONS showed the UK's annual inflation rate held firm at 3% in February 2026, matching the previous month's figure and meeting market expectations. This consistency marks a continued period of relative stability, with inflation remaining at its lowest point since March 2025.
UK annual inflation held steady at 3% in February 2026, but underlying data shows rising retail and housing costs offset by cheaper fuel. The BoE faces pressure as public inflation expectations surge amid global tensions.
The GBP/USD exchange rate rose slightly as odds of a negotiated settlement between the United States and Iran rose. It jumped to 1.3417 on Wednesday, up from the year-to-date low of 1.3220.
Pound Sterling Price News and Forecast: GBP/USD is slightly under pressure ahead of the UK CPI
Pound Sterling bulls seem hesitant ahead of UK CPI; GBP/USD capped near 200-day SMA
GBP/USD holds onto 1.34 with Wednesday's CPI set to test the BoE's hawkish pivot