GBP/USD Price Analysis: Sterling eyes key resistance at 1.3480 as traders await US data

The GBP/USD pair's trading with a positive bias around 1.3465 early European session October 4, 2025. Seems like market players are betting more on Fed rate adjustments. This weighs on the Dollar. Helps the Cable. Everyone's eyeing those upcoming US economic indicators now.

52 GBP gets you about 70.09 USD these days. The pair hit 1.3533 last week before pulling back a bit. Not too shabby.

Looking at the charts, GBP/USD looks pretty good. Sitting comfortably above that 100-day EMA on the daily. RSI's at 63.20 - above the midline. Kind of bullish.

That 1.3480-1.3500 zone? Tough resistance. Upper Bollinger Band sits there. Big psychological level too. Break that? We might shoot up to 1.3580 - September's high. Push further and 1.3650 comes into play.

Downside? First stop's 1.3410 - that September 27 low. Crack that and we're looking at 1.3330, the lower Bollinger Band. Then 1.3285 near the 100-day EMA.

GBP/USD daily chart

Pound Sterling FAQ

What is the Pound Sterling?

Pound Sterling (GBP) - oldest currency still used anywhere. Been around since 886 AD. It's the UK's official currency. Fourth most traded globally. Makes up 12% of all forex transactions. Daily volume? A massive $630 billion.

Main trading pairs include GBP/USD ('Cable') at 11% of all FX trades, GBP/JPY (they call it the 'Dragon') at 3%, and EUR/GBP at 2%. Bank of England issues it.

How do the Bank of England's decisions impact the Pound Sterling?

The BoE's monetary policy really moves the Pound. They're obsessed with "price stability" - keeping inflation near 2%. Their favorite tool? Interest rates.

Inflation too high? They raise rates. Slows spending. Controls prices. GBP usually strengthens because higher rates attract investors. Money flows in.

Inflation too low? Economy might be sluggish. They'll cut rates. Makes borrowing easier. Businesses spend more. Not always great for the currency though.

How does economic data influence the Pound's value?

Economic indicators are like the UK's vital signs. GDP growth, PMIs, job numbers - they all push Sterling around.

Strong economy? Foreign money pours in. BoE might keep rates steady or even hike them. Good for the Pound. Weak data? Not entirely clear sometimes, but usually pushes Sterling down.