GBP/USD has maintained a consistent downward trend since mid-September 2025, when the price action entered a corrective phase. Data for the UK and the US have sent mixed signals, as inflation for both nations has stayed elevated, but their labor markets are showing some cracks. As traders brace for a big inflation week in the UK, let’s spot the trends in Cable.
This week, markets are gearing up for major UK inflation data, with the December Bank of England meeting gaining traction over recent weeks.
With economic activity slowing while inflation remains stubbornly high, the Bank of England has been stuck in a difficult spot. The recent cooling in both economic and labor market activity helps ease some pressure, but the policy rate — tied with the US at 4%, the highest in the OECD — remains in restrictive territory, as highlighted in the BoE’s Monetary Policy Summary from November 6.
Meanwhile, in the US, markets continue to price in hesitant reductions from the current 4% benchmark, supported by private data such as the new weekly ADP employment report and Challenger layoffs, which have surged to their fastest pace in 20 years — flashing worrying signals for the US labor market.
Even so, the Fed struck a notably hawkish tone at its last meeting and has broadly maintained this tone throughout public appearances by its members, which helped the dollar regain some strength throughout the end of October.
Cable (GBP/USD) has been trending lower since entering a descending sequence on September 17 and has consistently respected that structure. Last week, however, the pair staged a swift rebound from the 1.30 support area and is now testing the upper boundary of its daily channel.
A key level to watch is the 1.33 pivot, which also aligns with the two major daily moving averages.
A break and close above this zone could restore the higher timeframe sideways action seen since July 2025.
Conversely, a rejection from this pivot would likely maintain the pair’s descending structure.
GBP/USD Daily chart, November 17, 2025. Source: TradingView. Past performance is not indicative of future results.
Resistance levels
- 1.33 Major pivot (+/- 100 pips) Mid-October resistance 1.3450
- Mid-October resistance 1.3450
- Intermediate resistance 1.36
- 2025 highs resistance between 1.3720 and 1.38
Support levels
- 1.3150 to 1.32 Main support (immediate test)
- 1.30 next daily support
- Support at Liberation Day lows around 1.28
- 2025 lows 1.21
This article is for general information purposes only, not to be considered a recommendation or financial advice. Past performance is not indicative of future results. It is not investment advice or a solution to buy or sell instruments.
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