GBP/USD at 1.3436 as UK shows strength amid US economic wobbles

The GBP/USD sits at 1.3436 during North American trading hours. Holding steady. Recent economic indicators from both countries have shifted market sentiment. UK fiscal worries seem to be fading away. British economy? Still resilient. The pair bounced back nicely from its 1.3332 low earlier in the session.

Sterling stands firm with UK Services boost despite Dollar jitters

Wednesday saw the US Dollar lose ground. Gone was Tuesday's momentum that pushed the DXY past 98.50. Job openings fell to 7.181 million in July. Down from June's 7.437 million. The BLS data isn't great.

Hiring went up by 41K. Layoffs increased by 12K too. Trade tensions are hurting business confidence. Kind of surprising how much tariff talk is affecting hiring decisions.

Factory orders contracted 1.3% month-over-month in July. Not terrible. Markets expected worse at 1.4%. Still, manufacturing has been contracting for six straight months now. Not a pretty picture.

All eyes on Friday's Nonfarm Payrolls. The economy probably added around 75K jobs in August. Unemployment might tick up slightly. We'll see.

Over in Britain, strong Services PMI has calmed nerves about government spending discipline. August reading hit 54.2. Up from July's 51.8. Best since April 2025! Impressive stuff.

BoE's Bailey shared some thoughts. Quantitative tightening isn't really driving bond yields up, he says. Inflation expectations look stable. Rates will likely keep falling. He seems worried about job market risks though.

Another policymaker stressed getting inflation back to 2%. They'll keep policy tight as needed. No longer than necessary. Fair enough.

GBP/USD Price Analysis: The technical view

GBP/USD has climbed back from weekly lows. 1.3400 reclaimed. Next up? The 100-day SMA at 1.3450 looks important. Break that, and traders might target the 20-day SMA at 1.3483. Right next to it sits the 50-day SMA at 1.3484. The big 1.35 level looms beyond.

Looking down? Close below 1.3400 could mean trouble. Might retest September 3's low of 1.3332. Then comes 1.3300. Round numbers matter.

Pound's Weekly Performance

Sterling's been mixed against major currencies this week. Crushed the Yen. Modest moves against the Dollar. The performance matrix shows percentage changes between major currencies:

USD EUR GBP JPY CAD AUD NZD CHF USD 0.15% 0.38% 0.73% 0.40% -0.06% 0.16% 0.43% EUR -0.15% 0.23% 0.50% 0.24% -0.21% 0.00% 0.28% GBP -0.38% -0.23% 0.18% 0.03% -0.42% -0.21% 0.11% JPY -0.73% -0.50% -0.18% -0.26% -0.76% -0.52% -0.25% CAD -0.40% -0.24% -0.03% 0.26% -0.44% -0.23% 0.09% AUD 0.06% 0.21% 0.42% 0.76% 0.44% 0.22% 0.56% NZD -0.16% -0.00% 0.21% 0.52% 0.23% -0.22% 0.32% CHF -0.43% -0.28% -0.11% 0.25% -0.09% -0.56% -0.32%

GBP/USD sits at 1.3436 as of October 6, 2025. The Pound keeps dancing through global uncertainty. Staying relatively stable. It's not entirely clear how long this balance will last.