*Credit to: Adam Lemon, original author at DailyForex.com, article “GBP/USD Forex Signal: 10 July 2025″*
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**GBP/USD Forex Signal: 10 July 2025**
The GBP/USD currency pair, one of the most widely traded pairs in the forex markets, continues to draw intense scrutiny from traders and analysts as we enter the second week of July 2025. Persistent volatility, diverging monetary policy expectations, and an event-packed macroeconomic calendar have ensured this pair remains at the forefront of forex strategy discussions.
In this update, we provide an in-depth technical and fundamental analysis of the GBP/USD, dissecting the current sentiment, recent price action, and upcoming key levels to watch, as guided by price charts and macro developments. We also offer actionable trade ideas and risk management tips for traders navigating these dynamic conditions.
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### Recent Price Action and Context
– The GBP/USD pair began trading this week near 1.2840, reflecting continued demand for the British Pound, even amidst sometimes mixed economic data from the UK and tepid risk sentiment globally.
– The pair reached a recent high of 1.2901 but faced resistance as US Dollar buying emerged amid rising US Treasury yields.
– GBP/USD remains within a multi-week ascending channel, indicating that the broader bullish trend, which started in late May 2025, is still valid.
– However, with the pair approaching overbought territory as measured by technical oscillators and some divergence between GBP strength and UK fundamental data, traders should be especially attentive to signs of trend exhaustion and potential reversals.
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### Macro Drivers Influencing GBP/USD
#### UK Fundamentals
– **Economic Growth**: The UK’s GDP growth in Q2 has slightly underperformed expectations. Services PMI and Manufacturing PMI releases have been mixed, with the former holding up better than the latter.
– **Inflation Data**: The latest CPI reading came in at 2.7%, above the Bank of England’s (BoE) target, fostering speculation about tighter monetary policy.
– **Bank of England Policy**: The BoE holds a hawkish tilt, but policymakers have started to temper guidance on further rate hikes. Expectations are coalescing around a cautious pause, contingent on further inflation moderation.
– **Political Developments**: Political stability remains high, but comments from leading policymakers indicate rising concern about a slow return to pre-pandemic productivity growth.
#### US Fundamentals
– **Federal Reserve Outlook**: The Fed’s messaging has turned more data-dependent. The FOMC minutes released this week indicated some openness to future rate cuts, but only as inflation shows sustained moderation toward target.
– **US Labor Market**: NFP data released last Friday beat expectations, prompting a rally in US yields and temporary support for the US Dollar.
– **US Inflation**: The coming week will bring the latest CPI figures. Markets await these with bated breath, knowing a miss or beat could sharply alter short-term USD
Read more on GBP/USD trading.