The GBP/USD pair extends its decline for a fifth straight session on Friday, drifting back toward the nearly one-month low recorded the previous day. During the Asian session, the pair trades below the mid-1.3400 region and remains under pressure as traders turn their focus to crucial US economic releases for fresh direction.
Markets are awaiting the Advance US fourth-quarter GDP figures and the Personal Consumption Expenditures (PCE) Price Index, both scheduled for release later in the day. These reports are expected to offer clearer insight into the Federal Reserve’s interest rate outlook and could significantly influence short-term US Dollar movements. In the meantime, fading expectations of aggressive rate cuts from the Fed have kept the US Dollar firm near its strongest level since January 23, adding downside pressure on Pound Sterling (GBP/USD).
On the UK side, the Pound continues to underperform amid growing expectations that the Bank of England will cut interest rates at its March policy meeting. Those expectations strengthened after the latest UK labor market data showed the unemployment rate rising to 5.2% in the three months to December, alongside signs of moderating wage growth. Additionally, UK inflation eased to its lowest level in nearly a year, reinforcing the case for a more accommodative policy stance from the BoE.
Technically, the pair’s weakness is also linked to sustained selling following this week’s break below the 1.3530–1.3520 support zone, which has now turned into resistance. This breakdown supports a bearish near-term outlook. Even if weaker US data temporarily weighs on the Dollar, any bounce in Pound Sterling (GBP/USD) could face renewed selling pressure. With the broader fundamental backdrop favoring the Greenback, the pair appears set to post notable weekly losses and may remain exposed to further downside.
