GBP/USD Hits Three Week Lows After U.K. Jobs Data
Sterling weakened sharply against the U.S. dollar today as disappointing UK labor market data intensified expectations of a Bank of England rate cut, keeping GBP/USD on the defensive.
GBP/USD traded lower throughout Tuesday as fresh U.K. labor market figures showed a notable rise in unemployment and softer wage growth, reinforcing the view that the U.K. economy is losing momentum. The British unemployment rate climbed to the highest level in several years while average earnings growth eased more than expected, prompting markets to sharply increase bets on a rate cut by the Bank of England as soon as March. With investors now pricing more dovish monetary policy from the BOE, Sterling came under broad pressure versus the U.S. Dollar. On the U.S. side, relatively firm U.S. economic news and stronger dollar demand added to Sterling’s headwinds, leaving GBP/USD weaker on the day as markets balanced domestic U.K. weakness with external macro momentum.
GBP/USD Daily Price History
In the above chart, GBP/USD rates’ prior bullish breakout has seemingly failed, with the pair having returned within the triangle that formed dating back to July 2025. In doing so, GBP/USD dropped to the lowest level since January 23 before finding support at its 50-day EMA (exponential moving average). Further selling would see the uptrend from the November 2025 and January 2026 swing lows broken, concurrently producing a drop below the 100-day EMA. Should support fail around current levels, a deeper setback towards 1.3400 would appear likely over the coming sessions.
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