GBP/USD Price Analysis – March 10, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its bullish trend and remained well bid above the 1.2900 level.
However, the bullish rally was supported by a weaker US Dollar, which lost traction mainly due to growing concerns over the US economic outlook.
On the other hand, the GBP/USD pair's gains could be limited due to the Bank of England's cautious stance and potential rate cuts, as traders focus on upcoming UK GDP and US CPI data.
US Dollar Struggles Amid Economic Concerns and Market Expectations for Fed Action
On the US front, the US dollar has struggled to gain strength as concerns about the economy grow. US President Donald Trump’s comments last Friday added to these worries. He said his "America First" policies might cause short-term economic problems.
Trump mentioned that the US is going through a "period of transition" and didn't rule out the possibility of a recession. This follows recent tariffs of 25% on Canada and Mexico and a 10% increase in taxes on Chinese imports.
Meanwhile, market analysts have changed their view on Trump’s policies, now seeing them as potentially harmful to economic growth instead of boosting it.
Goldman Sachs lowered its Q4 2025 GDP growth forecast to 1.7% from 2.2% and increased the chance of a recession next year to 20%.
These concerns have led to speculation that the Federal Reserve might need to start easing its policies again, possibly as soon as June.
Moving on, investors are waiting for upcoming economic data, like the US JOLTS Job Openings report, which could affect the Fed’s decisions.
However, US Fed Chair Jerome Powell recently said the central bank will wait for more clarity on Trump’s economic policies before making any changes to interest rates.
BoE's Cautious Approach and Market Focus on Upcoming Economic Data
On the other hand, the Bank of England (BoE) has taken a more cautious approach. Although there is some pressure on the Pound, BoE member Catherine Mann questioned the need for gradual interest rate cuts due to global economic uncertainty.
Despite this, traders are still expecting two rate cuts this year. These mixed signals from both the Fed and the BoE have kept investors focused on upcoming economic data, especially the UK GDP report for January and the US Consumer Price Index (CPI) for February, both of which could affect future monetary policy decisions.
GBP/USD – Technical Analysis
The GBP/USD pair remains in a steady uptrend but is showing signs of consolidation after failing to break above $1.29446, the pivot point level.
The pair is currently trading around $1.29131, hovering near key technical levels as traders assess broader market conditions.
On the upside, immediate resistance stands at $1.30286, with a break above this level potentially driving the pair toward $1.30893 and $1.31531, where sellers may emerge.
However, the pair is struggling to sustain upward momentum, and without a decisive breakout, further upside may remain limited in the short term.
Conversely, immediate support is found at $1.28691, aligning with recent pullback levels. A break below this could open the door for a decline toward $1.28031 and potentially $1.27444, where buyers may attempt to re-enter the market.
The 50-day EMA at $1.27504 serves as a critical dynamic support level, reinforcing the overall uptrend.
Fundamentally, traders remain cautious ahead of key U.S. inflation data, which could shift expectations on Federal Reserve rate cuts.
A stronger-than-expected CPI report may boost the U.S. dollar, putting pressure on GBP/USD, while weaker inflation data could reignite buying interest in the pound.
Related News
- GOLD Price Analysis – March 10, 2025
JOIN LHFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.