Pound Sterling Secures Fourth Straight Monthly Gain Against US Dollar

Pound Sterling Poised for Fourth Monthly Win Despite USD Rebound

H2: GBP/USD Slips Slightly but Maintains Bullish Monthly Streak

The Pound Sterling (GBP) edged lower to around 1.3475 versus the US Dollar (USD) during Friday’s European trading session. While the pair faces minor intraday pressure, it remains on track to close May with a fourth straight monthly gain, reflecting solid resilience in the face of global macro uncertainty.

H2: What’s Supporting the British Pound?

Several factors are behind the sustained strength of the GBP:

• Bank of England's (BoE) cautious policy stance, with markets not expecting aggressive rate cuts.
• Progress in key UK trade agreements, including negotiations with the US, India, and the EU, which enhance the UK's economic prospects.
• Market positioning, with future rates markets pricing in only one 25 bps cut and a 50% chance of another by the end of the year (Reuters).

H2: Trump Tariff Tensions Weigh on USD Outlook

The US Dollar faces a headwind after a federal appeals court temporarily blocked a lower court’s decision to halt former President Donald Trump’s sweeping tariffs. The uncertainty surrounding tariff implementation, combined with anticipation around Friday's US PCE inflation report, is keeping the USD volatile.

H2: GBP/USD Technical Overview

• Immediate Support: 1.3415
• Resistance Zone: 1.3520 and 1.3575
• Bias: Bullish monthly, neutral short-term

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✅ Conclusion

Despite short-term dips, the British Pound continues to outperform its US counterpart, supported by solid economic fundamentals, political clarity, and cautious central bank moves. With GBP/USD on track for a fourth monthly gain, traders now shift their attention to the upcoming US PCE Price Index, which may shape next week’s market tone.