GBP/USD continues to face downward pressure, hovering around the 1.3500 level. Be wary of a potential break below this level.
2026-02-19 11:30:15
GBP/USD continued its nearly three-day decline in Asian trading on Thursday, consolidating in a narrow range near a four-week low, currently trading around 1.3495.
The pound continued to be pressured as UK employment and inflation data fell short of expectations, fueling market bets that the Bank of England might cut interest rates in March.
Meanwhile, the dollar remained strong due to hawkish divisions within the Federal Reserve and potential geopolitical risks, further increasing downward pressure on the pound. The minutes of the Fed's January meeting revealed that officials were divided on the future direction of interest rates.
If inflation falls as expected, further interest rate cuts could be considered; however, premature easing could undermine the 2% inflation target. While this news somewhat limited the dollar's rapid decline, the dollar as a whole remains supported by geopolitical risks and safe-haven demand.
Market focus will also be on U.S. economic data released on Thursday, including initial jobless claims, the Philadelphia Fed manufacturing index, and pending home sales data.
Investors will also be watching speeches by Federal Reserve officials and the U.S. Personal Consumption Expenditures (PCE) price index released on Friday for further guidance on the movement of the dollar and GBP/USD.
The daily chart shows that GBP/USD is hovering around the psychological level of 1.3500. The short-term moving averages are in a downward trend, with the 50-day EMA providing resistance around 1.3529 and the 200-day EMA providing support around 1.3435.
The Stochastic Oscillator is approaching oversold territory, suggesting that short-term downward momentum may be running out, but the rebound potential is limited. If the price fails to break above the 50-day EMA today, the bears will remain in control, with initial support levels at 1.3450 and 1.3400.
The 4-hour chart shows that GBP/USD is maintaining a range-bound trading pattern. The downward momentum has weakened, but the price is still being suppressed by the psychological level of 1.3500. The short-term rebound may be blocked and encounter selling pressure again.
A break above the upper resistance level could temporarily alleviate downward pressure; otherwise, the weak trend within the range will continue.
Editor's Note:
GBP/USD is under short-term pressure, and supported by the weakness of the pound and safe-haven demand for the dollar, it is likely to continue its downward trend this week. US and UK economic data and geopolitical situations will determine the subsequent direction; caution is advised.
The pound continued to be pressured as UK employment and inflation data fell short of expectations, fueling market bets that the Bank of England might cut interest rates in March.
Meanwhile, the dollar remained strong due to hawkish divisions within the Federal Reserve and potential geopolitical risks, further increasing downward pressure on the pound. The minutes of the Fed's January meeting revealed that officials were divided on the future direction of interest rates.
If inflation falls as expected, further interest rate cuts could be considered; however, premature easing could undermine the 2% inflation target. While this news somewhat limited the dollar's rapid decline, the dollar as a whole remains supported by geopolitical risks and safe-haven demand.
Market focus will also be on U.S. economic data released on Thursday, including initial jobless claims, the Philadelphia Fed manufacturing index, and pending home sales data.
Investors will also be watching speeches by Federal Reserve officials and the U.S. Personal Consumption Expenditures (PCE) price index released on Friday for further guidance on the movement of the dollar and GBP/USD.
The daily chart shows that GBP/USD is hovering around the psychological level of 1.3500. The short-term moving averages are in a downward trend, with the 50-day EMA providing resistance around 1.3529 and the 200-day EMA providing support around 1.3435.
The Stochastic Oscillator is approaching oversold territory, suggesting that short-term downward momentum may be running out, but the rebound potential is limited. If the price fails to break above the 50-day EMA today, the bears will remain in control, with initial support levels at 1.3450 and 1.3400.
The 4-hour chart shows that GBP/USD is maintaining a range-bound trading pattern. The downward momentum has weakened, but the price is still being suppressed by the psychological level of 1.3500. The short-term rebound may be blocked and encounter selling pressure again.
A break above the upper resistance level could temporarily alleviate downward pressure; otherwise, the weak trend within the range will continue.
Editor's Note:
GBP/USD is under short-term pressure, and supported by the weakness of the pound and safe-haven demand for the dollar, it is likely to continue its downward trend this week. US and UK economic data and geopolitical situations will determine the subsequent direction; caution is advised.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
