• GBP/USD ascends to 1.2451, buoyed by disappointing US NFP figures showing only 143K jobs added.
  • US unemployment rate improves to 4%, with a notable increase in Average Hourly Earnings hinting at robust consumer spending.
  • Market anticipates Fed rate cut in June 2025, while recent BoE rate cut minimally impacts Pound’s performance.

The Pound Sterling registered gains versus the US Dollar on Friday following a softer-than-expected US Nonfarm Payrolls report. The GBP/USD seesawed within a 1.2418 – 1.2491 range and traded at 1.2451, up 0.15%.

The Pound appreciates following a weak US jobs report

January US NFP data was softer than expected, with the economy adding 143K people to the workforce, below the 170K estimated. The Unemployment Rate ticked lower from 4.1% to 4%, a sign that the labor market remains strong. At the same time, Average Hourly Earnings surged, which would likely keep consumer spending strong.

Following the data, futures linked to the Fed funds rate showed that traders estimate the Fed’s first rate cut in 2025 will be in June, as expected following the US Central Bank’s first policy meeting.

Meanwhile, the Pound remained unfazed after the Bank of England (BoE) cut rates by 25 basis points on Thursday, reducing the interest rate differential between the US and the UK.

Recently, the University of Michigan revealed that Consumer Sentiment deteriorated in its preliminary February reading, with the index dipping from 71.1 to 57.8, as expected.

GBP/USD Price Forecast: Technical outlook

The GBP/USD downtrend remains intact, but in the short term, it could rise toward the 50-day Simple Moving Average (SMA) at 1.2493. If buyers clear the latter the 1.2500 psychological level is up next.

Momentum turned bullish, as depicted by the Relative Strength Index (RSI). If GBP/USD achieves a daily close above 1.2500, buyers could drive the exchange rate to its December 30 peak of 1.2607.

On the other hand, if GBP/USD tumbles below 1.2450, the next support would be the February 6 swing low of 1.2359, ahead of 1.2300.