GBP/USD Price Analysis: Cable slips to three-month low amid firmer US Dollar

The GBP/USD pair is trading near the 1.3240 price region, falling for a fourth consecutive day, reaching lows it hasn’t touched since December 3, 2025. The downfall of the Great British Pound (GBP) is attributed to a firm US Dollar (USD) amid risk aversion.

The Iran war continues to inflate Oil prices, which in turn fuel concerns about rising inflation ahead of both nations' central banks monetary policy decisions. Next week, the Federal Reserve (Fed) and the Bank of England (BoE) are scheduled to make new determinations on interest rates.

Expectations are for a dovish hold by the BoE, and many economists expect the same. They point out that $100-per-barrel oil could increase the UK Consumer Price Index (CPI) by approximately 0.6% points due to higher fuel costs. The Fed is expected to keep rates on hold and publish a fresh Dot Plot.

The United Kingdom (UK) published the monthly Gross Domestic Product (GDP), which came in at 0% MoM in January, after posting 0.1% in December. In the United States (US), the JOLTS Job Openings report came in higher than expected at 6.946 million in January, up from December’s previously reported 6.55 million.

Also, the core January Personal Consumption Expenditures (PCE) Price Index came in at 3.1% in January, up from 3.0% in December.

Short-term technical analysis

On the 4-hour chart, GBP/USD trades at 1.3241. The near-term bias turns bearish as the pair extends below both the 20-period and 100-period Simple Moving Averages (SMAs), with the shorter average now rolling lower beneath the longer one. This alignment reinforces downside pressure, while price holding under the 1.3289 and 1.3346 horizontal resistances confirms sellers’ control. The Relative Strength Index (RSI) indicator hovers near 30, reflecting weak momentum and sustained bearish dominance.

On the downside, initial support is located at 1.3230, where a horizontal line marks the nearest structural floor beneath the market; a clear break below this level would open the door toward fresh lows in the current downswing. Immediate resistance stands at 1.3289, with 1.3346 following higher as the next cap, both aligning above spot and reinforcing the broader selling bias while the price remains pinned underneath these barriers.

(The technical analysis of this story was written with the help of an AI tool.)