10.02.2025
Jainam Mehta
Contributor
10.02.2025

GBP/USD price remains under pressure near $1.24 as U.S. dollar strengthens

GBP/USD price remains under pressure near $1.24 as U.S. dollar strengthens GBP/USD remains vulnerable as U.S. dollar strength limits gains

The British pound (GBP) continues to hover around 1.2400 against the US dollar (USD) on Monday, failing to build on intraday gains. A combination of renewed US trade policy concerns and a modestly stronger dollar keeps the currency pair under pressure, with upside momentum capped by key resistance levels.

US President Donald Trump’s recent tariff threats have fueled demand for safe-haven assets, bolstering the greenback. The latest US jobs report, which showed Nonfarm Payrolls rising by 143,000 in January and the unemployment rate falling to 4.0%, has further strengthened expectations that the Federal Reserve (Fed) will maintain a steady policy stance. This has limited the pound’s ability to gain ground, as market participants factor in the possibility of higher-for-longer U.S. interest rates.

GBP/USD price movement (December 2024 - February 2025) Source: TradingView.

Diverging monetary policies weigh on GBP/USD

While the Fed is expected to maintain a cautious policy stance, the Bank of England (BoE) has taken a dovish turn, adding to the pound’s weakness. The BoE has downgraded UK economic growth forecasts and signaled potential rate cuts in 2025. The central bank’s latest meeting saw policymakers favoring additional easing, reinforcing a bearish outlook for GBP/USD.

From a technical perspective, GBP/USD remains vulnerable below its 50-day Simple Moving Average (SMA). The currency pair has struggled to break above 1.2500, suggesting that downside risks remain prominent.

Market outlook: GBP/USD faces key support and resistance levels

If GBP/USD fails to hold above 1.2370, the next downside targets are 1.2300 and 1.2250. Continued selling pressure could push the pair toward 1.2175, marking a deeper retracement.On the upside, a break above 1.2500 could trigger bullish momentum, with potential targets at 1.2580 and 1.2600. However, a sustained rally would require a decisive move past 1.2720, where the 100-day SMA currently sits.

On the basis of previously analyzed charts, GBP/USD remains in a consolidation phase, with bearish pressure intact unless it clears key resistance levels.

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