Pound Sterling (GBP) remains stable following a 0.1% decline in UK GDP for January, slightly below expectations. The rolling three-month measurement has seen a rise of 0.2%, which aligns with forecasts.
January’s economic activity was reportedly affected by global uncertainties and tariff issues. The UK economy continues to face challenges with growth, as noted by UK Chancellor Rebecca Reeves.
Market Performance And Key Levels
The GBP has shown little progress this week, with short-term support identified at 1.2910. Key resistance levels are observed at 1.2955 and 1.2990, although there is an absence of signals indicating a reversal of recent gains.
The small dip in GDP for January hasn’t come as a surprise, but it does highlight that economic momentum isn’t particularly strong. The slight quarterly increase indicates that there is still some resilience, but it does little to dispel concerns about slow growth. Markets had anticipated better stability, yet external pressures, including global tensions and trade barriers, appear to have had an effect. Reeves acknowledged the economic difficulties, reinforcing the view that the country isn’t out of the woods just yet.
Despite the subdued data, the pound has managed to hold steady. Movement in the currency has been limited, suggesting that traders are not rushing to reprice expectations. For those tracking short-term shifts, 1.2910 has proven to be a support level, with resistance noted at 1.2955 and 1.2990. So far, there’s been little to suggest that recent gains are reversing, implying that the market remains hesitant rather than reactive.
Trading Outlook And Market Sentiment
From a trading perspective, patience may be required. With no clear catalyst for stronger movement, short-term positioning remains a balancing act. The absence of a sharp reaction may mean that this data was already priced in, or that investors are waiting for further confirmation before adjusting their stance. Price action suggests market participants will be looking for firmer direction from upcoming information.
