1.32 in sight as British Pound slides and Fed hawks overshadow solid UK growth

0.38% lower at 1.3224: GBP/USD records a third day of losses.
0.7% UK Q3 GDP growth fails to lift Sterling.
Ahead of Friday's US PPI, Fed's Hammack warns of a worsening inflation outlook.

GBP/USD trades at 1.3224, down 0.38%. Sterling is sliding towards 1.3200 against the US Dollar as losses extend into a third consecutive day. The decline persists despite higher-than-expected US jobless claims and UK Gross Domestic Product (GDP) figures pointing to steady economic growth.

GBP/USD losing streak persists as hawkish Fed comments outweigh firm UK GDP

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

US unemployment benefit applications rose by 200K, exceeding the 195K forecast and the previous 191K reading. Continuing Jobless Claims, however, fell to 1.697 million from 1.717 million over the week, signalling continued labour market strength.

Separately, Existing Home Sales recorded a -5.5% change against September's reading, falling to 3.75 million from 3.97 million.

Investors largely looked past the figures, focusing instead on Cleveland Fed President Beth Hammack's remarks. She warned that the inflation outlook was deteriorating while backing a gradual approach to monetary policy.

In a Yahoo! Finance interview, Chicago Federal Reserve (Fed) President Austan Goolsbee described inflation as “well above target,” adding that the “hot inflation report wasn’t a one-off.”

UK Q3 GDP growth matched estimates at 0.7%. Even so, GBP/USD struggled to find support following Fed Governor Waller's hawkish comments last Tuesday. The release follows the Bank of England (BoE) rate increase on 5 November. Investors began pricing in another rise towards the end of the year, assigning it a 75% probability.

On geopolitics, US President Donald Trump stated that the US does not need an agreement with Iran. He also directed Vice President Vance to prioritise domestic matters over efforts to secure a peace deal with Tehran.

The upcoming US economic calendar includes remarks from Chicago Fed's Goolsbee, NY Fed's John Williams and other officials. Friday brings the expected release of the Producer Price Index (PPI). A reading above expectations could pave the way for additional tightening.

GBP/USD Price Forecast: Technical Bias Remains Bearish

Chart Analysis GBP/USD — GBP/USD daily price chart

At 1.3234 on the daily chart, GBP/USD retains a bearish short-term bias. Spot remains below the 50-, 100- and 200-day simple moving averages (SMAs), which converge around 1.3346. Immediate support comes from the former downtrend resistance near 1.3221, with the pair holding just above that breakout level. At 40.5, the Relative Strength Index (14) remains below its midpoint, suggesting persistent selling pressure rather than fully oversold conditions.

The three-SMA cluster around 1.3346 provides the first upside hurdle. Next is the descending trend line drawn from the 1.3653 peak, with a break point near 1.3372. A sustained advance beyond these levels would be required to reduce the prevailing bearish bias. Below spot, the nearby trend-line breakout around 1.3221 offers initial support, while the current 1.3234 area remains pivotal. A daily close beneath this floor would leave GBP/USD vulnerable to further declines. Broader resistance at 1.3708 and 1.3874 remains far above the market.

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

Pound Sterling: Today's Performance

Against the major currencies listed below, the British Pound (GBP) recorded its strongest performance today versus the Australian Dollar. The table presents its percentage changes against each currency.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.27%	0.29%	0.08%	0.05%	0.60%	0.33%	0.18%
EUR	-0.27%		0.02%	-0.18%	-0.23%	0.33%	0.05%	-0.09%
GBP	-0.29%	-0.02%		-0.19%	-0.23%	0.31%	0.04%	-0.11%
JPY	-0.08%	0.18%	0.19%		-0.04%	0.52%	0.23%	0.10%
CAD	-0.05%	0.23%	0.23%	0.04%		0.55%	0.27%	0.14%
AUD	-0.60%	-0.33%	-0.31%	-0.52%	-0.55%		-0.27%	-0.42%
NZD	-0.33%	-0.05%	-0.04%	-0.23%	-0.27%	0.27%		-0.11%
CHF	-0.18%	0.09%	0.11%	-0.10%	-0.14%	0.42%	0.11%

Percentage movements between major currencies are displayed in the heat map. Select the base currency from the left-hand column and the quote currency from the top row. Selecting the British Pound on the left and following its row across to the US Dollar, for instance, gives the percentage change for GBP (base)/USD (quote) in the corresponding cell.