GBP/USD Trades Near 1.3530 with Bullish Bias, But Lacks Conviction Ahead of US-China Talks

GBP/USD Inches Higher to 1.3530, But Momentum Stalls Ahead of US-China Talks

The GBP/USD currency pair is showing a modest bullish tilt early Monday, trading around the 1.3530–1.3535 zone, though it lacks strong upward conviction. The pair gains marginally—about 0.05% on the day—as the US Dollar (USD) eases despite Friday’s upbeat US Nonfarm Payrolls (NFP) report.

USD Bulls Hesitate Despite Strong NFP

The May NFP report came in stronger than expected, but the USD’s inability to extend gains has puzzled markets. Dollar bulls appear hesitant, with caution prevailing ahead of the critical US-China trade negotiations set to begin in London.

This hesitation in the Greenback is a primary factor supporting GBP/USD, especially after the pair pulled back from its 2022 peak of 1.3615 reached last week.

BoE Stance Provides Underlying Support

The Bank of England (BoE) continues to favor a gradual and cautious path on interest rates, as confirmed by Governor Andrew Bailey last week. He cited ongoing global trade uncertainties as a reason for measured action, which has bolstered the Pound’s relative resilience.

Limited Upside Amid Risk-Off Sentiment

Despite the USD’s softness and BoE support, the GBP/USD pair struggles to break higher, reflecting market prudence. Investors are holding back on new positions until there’s clarity from the US-China trade talks, which could have broader implications for risk sentiment and global trade flows.

Related Content on Tredu.com:

• What to Expect from US-China Trade Talks in London
• BoE’s Rate Path: Caution or Commitment?
• How NFP Results Influence Forex Markets

Key Takeaways:

• GBP/USD trades around 1.3530–1.3535, mildly bullish but lacking momentum.
• US Dollar softens despite strong May NFP data.
• BoE's cautious stance lends support to the British Pound.
• Market remains wary ahead of US-China trade talks.
• Risk sentiment and central bank cues remain key drivers in the near term.