GBP/USD strengthens to around 1.3685 in the early European session

GBP/USD Price Forecast: Gains ground above 1.3650, overbought RSI signals potential pause

The GBP/USD pair extends the rally to near 1.3685, the highest since September 17, 2025, during the early European session on Tuesday. The Pound Sterling (GBP) edges higher against the US Dollar (USD) on the stronger-than-expected UK Retail Sales and Purchasing Managers’ Index (PMI) data. These upbeat reports have led some analysts to predict a potential delay in further Bank of England (BoE) rate cuts. 

On the USD’s front, concerns over the Federal Reserve (Fed) independence and worries about another US government shutdown could weigh on the US Dollar. US President Donald Trump could announce the name of the Fed’s next chairman sometime in January. Traders worry that the US central bank would lose its independence after the appointment of a Trump candidate as Fed Chairman. Read more…

GBP/USD tests 1.37 as market trepidation keeps Greenback on the defensive

GBP/USD caught a halting bullish step higher to open the new trading week, knocking on the 1.3700 handle for the first time since September. The Trump administration threatened additional tariffs on a number of European nations if they don’t give over control of Greenland to the US, but markets continue to bank on the usual turnaround on trade war rhetoric from the White House.

UK data remains strictly low-tier this week, with the Federal Reserve’s (Fed) latest interest rate decision standing as the week’s key event. The Fed is broadly expected to stand pat on interest rates, but investors will be looking for any meaningful tonal shifts on policy. The Trump administration is also expected to announce Trump’s upcoming pick to replace Fed Chair Jerome Powell as head of the Fed when Powell’s term ends in May. Read more…

GBP/USD climbs to 1.3690 as Dollar slumps amid rumors of Yen intervention

The Pound Sterling (GBP) rises some 0.55% on Monday as the US Dollar (USD) remains on the defensive amid rumors of possible interventions in the FX markets by Japanese authorities and the Federal Reserve (Fed). Solid US data was ignored by traders despite being solid, ahead of the January meeting of the Federal Open Market Committee (FOMC). GBP/USD trades at 1.3690 after bouncing off daily lows of 1.3642.

Last Friday, financial markets opened with news of a possible intervention to propel the Japanese Yen (JPY) and weaken the US Dollar. In the afternoon, a Bloomberg breaking news revealed that the desk of the Federal Reserve Bank of New York “contacted financial institutions to ask about the yen’s exchange rate.” Read more…