FX.co ★ GBP/USD

The British Pound (GBP) is weaker against other major currencies on Friday, trading 0.1% lower at roughly 1.3380 against the US Dollar (USD) in European sessions. The British currency is under downward pressure despite positive flash data from the United Kingdom (UK) S&P Global Purchasing Managers' Index (PMI) readings for October. The PMI survey showed robust business activity, driven by a significant increase in manufacturing and services output. The Composite PMI index stands at 53.1, up from the previous month's final reading of 52.0. Expectations were for the data to be 51.8. "The UK economy gained momentum in October, as indicated by early PMI data which point to the fastest growth since February. This positive indication of the strength of the economy is reflected in firms hiring extra staff for the first time since the Autumn Budget in 2024 disrupted the hiring process," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. Earlier in the session, UK Retail Sales surprised to the downside. The Office for National Statistics (ONS) showed that UK Retail Sales slumped by 0.4% Month-on-Month (MoM) in September. The data was expected to fall but only modestly by 0.1%. On monetary policy, the Bank of England (BoE) looks like an odds-on favourite to raise interest rates at the November policy meeting. As Societe Generale analysts state, "a BoE rate rise in November is virtually 'nailed on,'" given "a brace of upside surprises for CPI and PPI output price inflation, and firmer wage data." They are convinced this combination of factors will make the MPC aware of "the budding risk of second round effects" and will "almost certainly trigger a hawkish response on interest rates." The US Dollar halts its slide and reverses as the market heads into the weekend. Market participants are eagerly awaiting the release of the preliminary United States (US) S&P Global PMI figures for October, scheduled for 13:45 GMT. GBP/USD is trading at 1.3381 on the daily chart. It is above the 20-period Exponential Moving Average (EMA) at 1.3319. Price is recovering from recent lows, supporting a mild short-term bullish outlook; it remains above the 20-period EMA, and the RSI is 56, positive but not overbought. The nearest downside support level is the pivot area at 1.3381. The 20-period EMA follows at 1.3319, providing a recovery trend as price remains above it. The dataset shows no resistance at this price, and it could go even higher as long as this support holds.