GBP/USD Forecast: Forex Friday | February 6, 2025

Author: Fawad Razaqzada, Market Analyst

Date: February 6, 2026

Market Overview

The GBP/USD currency pair has shown signs of stabilization following a turbulent trading session influenced by a dovish stance from the Bank of England (BoE) and a modest rally in the US dollar. After a significant sell-off in various asset classes, including cryptocurrencies and metals, the market has calmed, allowing the pound to recover some ground.

Key Economic Indicators

Looking ahead, the upcoming US jobs report and Consumer Price Index (CPI), along with UK GDP data, are expected to be pivotal in shaping the GBP/USD forecast. The market is particularly focused on the US non-farm payrolls report, which is anticipated to be more significant than usual due to recent soft labor market data.

Bank of England's Dovish Outlook

The BoE's recent decision to maintain interest rates, despite a dovish tone, has shifted market expectations towards a potential rate cut as early as March. This dovish sentiment has raised concerns about the UK economy's growth prospects, especially in light of the latest GDP data.

US Labor Market Concerns

Recent labor market indicators from the US, including a significant drop in job openings and disappointing employment reports, suggest a cooling labor market. This has led to speculation about the sustainability of the dollar's strength, particularly if the upcoming jobs report fails to meet expectations.

Technical Analysis

From a technical perspective, the GBP/USD pair appears to be in a range-bound trading pattern. Key support levels are identified around 1.3500-1.3565, which have held firm so far. A breakdown below this support could lead to further declines towards the January lows near 1.3350.

Conclusion

The outlook for GBP/USD remains uncertain, with the potential for a range trade rather than a clear directional move. The pound faces challenges from a dovish BoE and rising political uncertainty, while the dollar's strength may be tested by a slowing labor market. Upcoming economic data releases will be crucial in determining the next direction for the currency pair.

For further updates, follow Fawad Razaqzada on Twitter @Trader_F_R.