GBP/USD Moves Below 1.3450 Before U.S. GDP Report
On May 29, 2025, the British Pound (GBP) fell against the U.S. Dollar (USD), and the GBP/USD pair dropped below 1.3450. This happened as traders waited for the latest U.S. GDP (Gross Domestic Product) data, which shows how the U.S. economy is performing.
In the U.S., economic signals are mixed. The housing market is weak, but people are still spending money. This could mean inflation is still high. Because of this, investors think the U.S. central bank (Federal Reserve) might keep interest rates higher, which supports the U.S. dollar. As a result, the GBP/USD pair went down by 0.6% to around 1.2598.
In the U.K., the economic outlook is not very strong. The Bank of England kept interest rates at 4.75%, but there are talks about possible rate cuts in the future due to slow growth. The U.K.’s growth forecast for 2025 was also lowered from 1.5% to 0.75%.
From a technical view, GBP/USD is finding it hard to move above the 50-day EMA (a trend-following tool) around 1.2510. The RSI (a strength indicator) shows selling pressure has slowed, but the pair could still fall more if it can’t break key levels.
Impact: If U.S. GDP data is strong, the U.S. dollar might rise more, and GBP/USD could fall further. If the data is weak, the pair might hold steady or go up slightly.