Key points to watch in the GBP trend emerge; this week's central bank decision will be the guiding indicator

AirdropHunterKing · 2026-01-15T21:51:08+00:00

GBP/USD is cautious in Asian markets, currently quoted around 1.3360, with no clear direction. The dollar's rebound is limited by dovish signals from the Federal Reserve, with downside risks. The market is focused on upcoming UK employment and inflation data, as well as the Bank of England's interest rate decision, which is expected to remain unchanged at 3.75%.

AirdropHunterKing

2026-01-15 21:51:08

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Pound Sterling in Market Stalemate

The GBP/USD currency pair opened cautiously in the Asian market. Although there are no clear signs of selling pressure, the upward momentum remains limited. The current quote hovers around 1.3360, with little fluctuation throughout the day. Support is maintained at the 200-day moving average, which still holds its ground.

Dollar Rebound Faces a Ceiling

Last week, the dollar experienced lows not seen in over two months, and now it’s rebounding, which has become the main restraining factor for the pound. But the question is—weak global stock markets have increased demand for safe-haven assets, yet dollar bulls are hesitant to be too aggressive due to dovish signals from the Federal Reserve.

The market currently prices in two more rate cuts by the Fed next year. Against the backdrop of weakening employment data and the uncertain outlook for Fed Chair during the Trump era, these factors are weighing on the dollar’s upward potential. As a result, downside risks for GBP/USD are limited.

Key Data Calendar for This Week

Traders are holding their breath for several major events this week:

On Tuesday, UK employment data will be released first. Then on Wednesday, the UK inflation data will be updated. Thursday is the real highlight—the Bank of England’s interest rate decision (12:00 PM Beijing Time on December 18), which will determine the short-term direction of the pound. On the same day, the US Consumer Price Index will also be announced, potentially influencing the immediate reaction of GBP/USD.

Central Bank Decision Playbook

The Bank of England holds eight regular meetings each year, and its policy stance directly impacts the strength of the pound. If the central bank adopts a hawkish tone and raises interest rates, it usually benefits the pound; conversely, a dovish stance or rate cuts would put pressure on the currency. Currently, the market expects the BOE to keep rates unchanged at 3.75% (previously 4%).

This week, GBP traders are waiting for a clear signal from the central bank—whether to stay on hold or to have other plans.

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