**GBP/USD Forecast: 08 October 2025**
*Based on the original analysis by Noor Mohammadi for DailyForex.com.*
## Introduction
The GBP/USD currency pair, commonly referred to as “Cable,” remains one of the most heavily traded pairs in the foreign exchange market. As traders pivot their attention to the developments surrounding the Bank of England (BoE) and the Federal Reserve (Fed), the performance of GBP/USD provides a critical lens for assessing global economic shifts and key risk events. This article delves into the technical and fundamental landscape influencing GBP/USD as of 8 October 2025, drawing from Noor Mohammadi’s insightful analysis while expanding on the underlying context.
## Fundamental Overview
### British Economic Developments
– **BoE Monetary Policy:** The Bank of England continues to navigate a challenging economic environment marked by persistent inflation alongside tepid growth projections. Recent BoE commentary has signaled a cautious approach to rate adjustments, with policymakers emphasizing data dependency in policy decisions.
– **UK Inflation Data:** Inflationary pressures in the UK have moderated but remain above the central bank’s target. While wage growth is showing signs of easing, cost-of-living concerns continue to linger, affecting consumer confidence and spending patterns.
– **Growth and Labor Market:** GDP growth is modest, and the labor market, while still relatively resilient, faces headwinds from slowing hiring and increasing redundancies in certain sectors.
### US Economic Developments
– **Federal Reserve Decisions:** The Federal Reserve has opted for a “higher for longer” rate policy, displaying hesitance in signaling imminent rate cuts. The central bank remains focused on bringing inflation securely within its target range, which supports the US dollar’s underlying strength.
– **US Data Prints:** Recent releases including Non-Farm Payrolls (NFP), Consumer Price Index (CPI), and retail sales have delivered mixed signals. The labor market shows pockets of strength, though wage pressures and declining job openings hint at softening.
### Geopolitical and External Factors
– **Energy Prices:** Fluctuations in global oil and gas prices continue to impact inflation expectations in both the UK and US, influencing central bank strategies.
– **Global Risk Sentiment:** Market participants closely monitor geopolitical tensions and economic uncertainties, which tend to support safe-haven flows into the US dollar.
## Technical Analysis of GBP/USD
### Weekly Chart Analysis
The price action on the weekly chart suggests a medium-term consolidation pattern, with GBP/USD carving out key support and resistance levels.
– **Support Zone:** Major support is established in the 1.2110 to 1.2150 area, a zone previously tested in August and September 2025. This level has frequently attracted buying interest, stemming further downside.
– **Resistance Zone:** The primary resistance band lies near 1.2450 to 1.2500, coinciding with mid-July and late September swing highs. A decisive break here signals upside potential.
– **Momentum Indicators:** RSI (Relative Strength Index) remains neutral, oscillating near the 50 mark, highlighting equilibrium between buyers and sellers.
– **Moving Averages:** The 50-week simple moving average (SMA) at 1.2365 acts as a dynamic barrier. The pair remains trapped below the 200-week SMA, currently at 1.2580, underscoring the broader bearish bias.
### Daily Chart Analysis
Shorter-term charts reveal nuanced price dynamics within the broader trading range.
– **Range Trading:** The pair continues to hover between 1.2215 and 1.2435, with repeated failures to sustain moves beyond either extreme.
– **Key Levels to Watch:**
– Support: 1.2215, 1.2170, and 1.2110
– Resistance: 1.2350, 1.2435, and 1.2500
– **Chart Patterns:** A potential head-and-shoulders formation is
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