The GBP to new currency faces a central bank decision test, with several key data releases scheduled this week.

This week will be full of uncertainties for GBP/USD traders. Key events such as the Bank of England policy decision, the delayed release of the non-farm employment report, and UK inflation data will directly influence the direction of the pound against the new currency. Currently, GBP/USD is hovering around 1.3360, with market participants seeking trading opportunities amid these upcoming economic events.

Current Trend: Pound Finds Relief at Critical Support Level

GBP/USD remains steady during the Asian trading session, holding above the key 200-day moving average support. Although there is a lack of obvious upward momentum, the downward momentum is also waning. While the dollar attempted to extend last week’s rebound, its gains are limited by the Fed’s dovish stance. In the context of slightly deteriorating global risk appetite, risk aversion sentiment provides some support to the dollar, but this support is limited.

Focus This Week: GBP against the New Currency Dominated by Three Major Events

UK Employment Data Leads the Way

On Tuesday, the UK monthly employment data will be released, marking the first major economic indicator of the week. Following closely is the delayed October US Non-Farm Payrolls (NFP)(, both of which could impact GBP/USD.

Bank of England Decision as a Key Turning Point

On Thursday, the Bank of England will announce its interest rate decision, which is a core variable affecting the pound’s outlook. A hawkish stance and rate hikes generally benefit the pound, while the opposite is bearish. The market has already priced in the possibility of two more rate cuts next year, but signs of weakening labor markets may alter the central bank’s policy tone.

Inflation Data Clashes

On Wednesday, the latest UK inflation data will be released, followed by US consumer inflation data on Thursday. These two sets of data could lock in the short-term direction of GBP/USD. Inflation data directly reflect the central bank’s policy space, and traders are closely watching these releases.

Market Analysis: Dollar’s Rebound Lacks Momentum, Pound’s Support Remains Steady

Despite the cautious signals from the Fed last week, dollar bulls clearly lack the motivation to chase higher. The uncertain outlook for Fed Chair under Trump’s new policies limits aggressive shorting of the dollar and also causes some hesitation among dollar bulls. Weakness in global stock markets provides some support for safe-haven dollars, but this support is far from enough to drive GBP/USD significantly lower.

The ability of GBP/USD to stay around 1.3360 reflects the market’s defensive stance toward the pound. Support from the 200-day moving average remains sticky; as long as this line is not broken, the pound’s bottom support remains intact.

Outlook: Cautious Attitude Dominates the Market

Before this week’s key economic events and central bank decisions, traders are clearly adopting a wait-and-see approach. For investors long on the pound against the new currency, the hawkish signals from the Bank of England are a key focus; for those shorting, signs of weakening labor markets and downside inflation risks provide support for further declines.

During this data-intensive week, volatility in GBP/USD may further increase, and traders should be prepared for rapid price shifts.