GBP/USD Pulls Back Near 1.3515 as Traders Eye BoE Testimony and US Jobs Data

The British Pound slips against the US Dollar on Tuesday but remains above the 1.3500 threshold as market participants brace for key central bank signals and economic releases.

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Sterling Pauses After Multi-Day Rally

GBP/USD is trading with a mild bearish tone in early Tuesday action, slipping from its recent high of 1.3560 to hover near 1.3515. The decline comes amid a slight recovery in the US Dollar, following Monday’s sharp drop that pushed the Dollar Index (DXY) to six-week lows.

Despite this rebound, the broader outlook for the Dollar remains fragile. Dovish Federal Reserve expectations — driven by softening US inflation data — suggest that further interest rate cuts could be on the horizon later this year. Meanwhile, concerns about soaring US debt levels and rising US-China trade friction continue to limit upside potential for the Greenback.

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UK Rate Pause Expectations Offer Support to GBP

While the Dollar sees modest buying interest, the British Pound remains underpinned by expectations that the Bank of England (BoE) may hold rates steady at its June 18 meeting. With inflation on a gradual downtrend but still above target, policymakers are likely to adopt a cautious stance before resuming any rate cuts.

This policy divergence between the BoE and the Fed offers relative strength to GBP/USD and may help limit deeper pullbacks in the pair.

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All Eyes on BoE Testimony and US JOLTS Data

Investor attention now shifts to the BoE Monetary Policy Report Hearings before Parliament. Market participants will closely analyze remarks from Governor Andrew Bailey and other MPC members for any forward guidance on interest rate direction and economic risks.

Later in the day, the US JOLTS Job Openings data will offer fresh insights into the American labor market. Any major surprises could sway Fed policy expectations and spark volatility in GBP/USD.

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Technical Outlook: 1.3500 Key Support, 1.3560 Resistance

On the technical side, the pair faces immediate support near the psychological 1.3500 mark. A break below this could open doors to further downside toward 1.3460 and 1.3415. On the flip side, a sustained move above 1.3560 would confirm bullish continuation, targeting the next resistance at 1.3610.

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Conclusion

While GBP/USD is experiencing short-term pressure from USD strength, the underlying fundamentals — including diverging central bank paths and risk sentiment — suggest limited downside for now. Traders should remain cautious and await clarity from the BoE hearings and US labor market data.