British Pound slips on solid US jobless claims as Fed hawks lift USD

• GBP/USD extends decline as solid claims support Dollar.
• Fed speakers warn sticky inflation keeps tightening risks alive.
• UK docket absence leaves Sterling exposed to Dollar dynamics.

The Pound Sterling registers back-to-back bearish days over the last two days, down about 0.05% after US economic data revealed that the labour market remains solid, while investors eye Central Bank speakers at the Jackson Hole Symposium. The GBP/USD trades at 1.3588, after reaching a daily high near 1.3600.

GBP/USD weakens as sticky inflation comments bolster Fed tightening risks

The recent tranche of US data is supporting the Greenback, following the release of Core PCE data on Wednesday and the US Department of Labour's labour market figures on Thursday. Initial Jobless Claims for the week ending August 22 came in at 203K, below forecasts of 208K, suggesting layoffs remain low.

Other data showed that the trade deficit widened to $118.8 Billion in July from $101.4 Billion in the previous month, which is the largest goods trade gap since March 2025, when it hit a record as companies rushed to import goods ahead of Trump's “Liberation Day” tariffs announcement.

In the meantime, the US Dollar Index (DXY), which tracks the buck’s performance versus six currencies, holds firm at 99.14, following the release of solid data during the last two days.

Federal Reserve officials cross the wires at Jackson Hole

The Fed parade began with Kansas City Fed Jeffrey Schmid, who described inflation as "still stubborn" and "still sticky" in a CNBC interview on Thursday. " Meanwhile, the Chicago Fed's Austan Goolsbee also said inflation is his top concern, while the Cleveland Fed's Beth Hammack stated that “now is the time to act given the persistence of inflation.”

This has kept GBP/USD under downward pressure as the chances of further Fed tightening have increased. In the UK, the economic docket is absent, leaving Sterling reliant on US Dollar-linked dynamics.

Domestic developments in the UK resume next week as Parliament returns to session, while investors look for hints from the new Prime Minister, Andy Burnham's administration, regarding the Autumn Budget, in which he will seek to fund ambitious policies.

GBP/USD Price Forecast: Technical outlook

In the daily chart, GBP/USD trades around 1.3590, maintaining a constructive bullish tone as it holds above the cluster of supports defined by the simple moving average trio near 1.3417 and the reclaimed trend-line levels around 1.3393–1.3394 and 1.3488. The Relative Strength Index (14) at about 60 keeps a positive bias without reaching overbought territory, while the Fed Sentiment Index stabilizing near 132 suggests macro sentiment is not obstructing the ongoing recovery.

On the topside, immediate resistance emerges at the former rising trend-line break near 1.3631, ahead of the horizontal barrier at 1.3676, where bulls could face profit-taking. On the downside, initial demand is seen at the downtrend-line pivot around 1.3488, followed by the simple moving averages clustered near 1.3417 and the lower trend-line supports close to 1.3393–1.3394, levels that would need to give way to weaken the current bullish bias.

(The technical analysis of this story was written with the help of an AI tool. Know more.)