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GBP/USD consolidates below 1.3000, struggling to regain momentum after a pullback from four-month highs.
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US Dollar strengthens on upbeat S&P Global PMI data and expectations of Trump’s reciprocal tariffs.
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Market focus remains on trade tensions and economic data, shaping the next move for GBP/USD.
GBP/USD Forecast: Pound Sterling Lacks Momentum Amid Risk-Off Sentiment
After a strong rebound on Thursday, GBP/USD struggled to maintain directional momentum on Friday but still closed the week slightly higher. The pair remains in a consolidation phase around 1.2950 on Monday, with technical indicators signaling a lack of bullish momentum.
A deteriorating risk sentiment is limiting GBP/USD’s upside as investors grow increasingly concerned about an escalating global trade war and its potential negative effects on the economic outlook.
GBP/USD Weekly Outlook: Pound Sterling Holds Firm Amid Tariff Uncertainty
The Pound Sterling (GBP) extended its pullback from four-month highs against the US Dollar (USD) last week, keeping GBP/USD below the 1.3000 mark. After briefly retreating from multi-month highs above 1.3000, the pair entered a consolidation phase, fluctuating between 1.3000 and 1.2870.
Investor sentiment was influenced by expectations of targeted reciprocal tariffs from US President Trump and stronger-than-expected US S&P Global preliminary PMI data, which helped ease concerns over an economic slowdown. This, in turn, supported the US Dollar's recovery, limiting GBP/USD’s upside potential.
