GBP/USD: Sterling Well-Bid Near 3-Year Top as Traders Eye Major US Data This Week

Markets are antsy this week — the start of the month brings some of the most important data. Trading opportunities ahead?

🔥 Sterling Steady Near 3-Year High

• The GBPUSD pair was riding high early Tuesday, hovering above $1.35 — just about its strongest level since February 2022 — as traders were bracing for a storm of top-tier US data this week.
• After last month’s upside surprise in UK retail sales and inflation, the sterling remains well-bid as investors weigh whether the UK economy might be turning a corner.
• For now, the pair is consolidating gains, waiting for a catalyst from across the pond that could decide if this breakout has more legs.

📢 US Data to Shake FX Markets

• It’s all about jobs, jobs, jobs! With US job openings, private job growth, initial jobless claims and nonfarm payrolls (broad job growth) all due this week, the dollar is poised for volatility — and the sterling is caught in the crosswinds.
• The strength of the US economy will determine if the Fed sticks to its hawkish script or softens its tone, which could ripple across currency markets.
• Traders are watching for any weakness in the greenback that might give the Cable the momentum needed to crack through its current resistance near $1.36.

🐂 Pound Bulls Hungry for Confirmation

• Technical traders are eyeing a clean break above $1.36 as a possible confirmation of a longer-term uptrend — a move that could open up targets closer to $1.37 and beyond.
• The pound’s resilience has impressed speculators, but any signs of sticky inflation or weak US job growth could tilt the scales even further in its favor.
• Still, this is a week for disciplined trading: the data deluge could whipsaw positions, and pound bulls don’t want to be caught overextended ahead of Friday’s jobs print.