GBP/BWP Price & Performance (GBPBWP)

The British economy unexpectedly shrank by 0.1% in January, defying forecasts of modest growth. This decline, driven by contractions in production and construction, has raised concerns about the UK’s economic trajectory. The Bank of England is expected to hold rates steady this week, while markets anticipate rate cuts later in 2025.123

The British pound remains steady despite lackluster economic data, including shrinking GDP figures. Analysts expect the Bank of England to pause rate changes at its upcoming meeting. However, persistent inflationary pressures and global uncertainties continue to weigh on the currency’s outlook.145

GBP/USD has retreated slightly after recent gains, hovering near 1.2910. Traders are closely watching resistance at 1.2955 and 1.2990, which could signal further bullish momentum. Meanwhile, upcoming economic reports from the UK and US, including jobs data and retail sales, are expected to influence market movements.167