GBP/USD Hits Five-Week High

GBP/USD is trading near 1.3335 this Tuesday as the British Pound has benefited from a surprisingly strong spat of data. The November U.K. services PMI came in above expectations signaling stronger growth, while the inflation subcomponent fell to its lowest level since 2021. On the other end, the U.S. Dollar has been suffering amid a recalibration in Fed cut odds through 2026 thanks to news that Kevin Hassett has emerged as the frontrunner for next Fed Chair.

GBP/USD daily price history

In the above chart, GBP/USD rates have established a series of higher highs and higher lows off the early-November low, trading into former support (September, October) near 1.3350. Since mid-April, Cable has effectively remained between 1.3000 and 1.3800, which puts current price action squarely in the middle of the range. Accelerating upside momentum coupled alongside a weakening Dollar Index portends an environment favorable to dip buying in the short-term.

Trading forex requires an account with a forex provider like tastyfx. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them.