GBP/USD slows down after the 1.3500 psychological level, awaiting key US economic data

GBP/USD Price Fluctuates Around the Key Psychological Level of 1.3500 During the Asian trading session, traders continue to explore new directions after a recent decline that pulled the price down from last month’s high of over 1.3500.

The factor protecting the pound is the clear divergence in monetary policy outlooks between the two central banks. The Bank of England (BoE) has shown a more hawkish stance by signaling rate cuts, while the U.S. (Fed) remains cautious, leading to a weakening of the USD and signals of a softer dollar. Inflation concerns and the easing of rate hike expectations in the UK have slightly eased, boosting confidence in buying GBP.

Global Market Sentiment Favors Risk Assets reducing demand for the safe-haven US dollar. Many funds are choosing to establish positions in steady assets rather than falling into safe havens. These sustainable sentiments indirectly support the strength of the British pound.

Key Macroeconomic Data Masks Short-Term Decisions Traders need to balance their positions and wait for important data from the Fed, including the ADP employment report and ISM Services data to be released on Thursday, followed by the non-farm payrolls (NFP) and JOLTS job openings data on Friday.

Divergence of Opinions Within the BoE appeared in the December voting on interest rates, which was 5-4. This disagreement has led analysts to revise down expectations of a rate hike pause in 2026 due to inflation surprises. This situation indicates that the short-term outlook for the pound may still be supported.

In the Long Term, GBP/USD continues to show an upward trend due to the possibility of diverging from easing policies. Market fundamentals point to a minimum resistance level for upward movement, but until significant US macroeconomic data is released, new position accumulation will remain cautious.