GBP/USD slipped to 1.3224 on 11/12/2026, a 0.38% drop, as Fed hawkish comments eclipsed solid UK Q3 GDP growth and US jobless claims rose above expectations.

The British pound slipped for a third consecutive session on 11/12/2026, hovering near the 1.3200 psychological barrier. At 01:30 GMT the GBP/USD pair quoted 1.3224, a 0.38% decline, as Fed hawkish rhetoric outweighed solid UK growth data.

US labour market data fuels dollar strength

Initial jobless claims in the United States rose by 200,000 to 1.917 million, surpassing the consensus estimate of 1.795 million. Although the headline figure was higher, continuing claims fell to 1.697 million, indicating that the labour market remains resilient. The surprise in the claims data reinforced expectations of tighter monetary policy from the Federal Reserve.

Fed officials amplified the narrative. Cleveland Fed President Beth Hammack warned that the inflation outlook is deteriorating, while Chicago Fed President Austan Goolsbee described recent price pressures as “well above target.” Their comments nudged market sentiment toward a more aggressive stance, supporting the US dollar against most peers.

UK growth fails to lift the pound

In the United Kingdom, gross domestic product expanded 0.7% in the third quarter, matching analysts’ forecasts. The data confirmed that the British economy is still growing despite higher borrowing costs. Nevertheless, the pound could not translate the GDP print into gains, as traders remained focused on the Fed’s tone and the Bank of England’s recent rate hike on 11/5/2026.

The BoE move pushed the probability of an additional hike before year‑end to roughly 75%, according to market pricing. With the central bank likely to tighten further, the pound stayed under pressure, unable to break the 1.3346 cluster of the 50‑, 100‑ and 200‑day simple moving averages that act as a near‑term ceiling.

Read also: Usd index hits fresh year‑to‑date high in market overview

Technical picture and key levels

On the daily chart the pair sits just above the prior down‑trend resistance at 1.3221, which now serves as immediate support. The RSI at 40.5 stays below the 50‑midline, suggesting lingering bearish momentum but not yet an oversold condition.

Should the price close below 1.3221, the next support lies near the trend‑line break at 1.3170, while upside targets begin at the triple‑SMA zone around 1.3346, followed by the descending trend‑line barrier near 1.3372. Higher resistance levels sit at 1.3708 and 1.3874, well above current levels.

What to watch next

Traders will monitor upcoming US data, notably the Producer Price Index (PPI) due on Friday, which could further shape expectations for a December Fed rate hike. Additional Fed commentary from Chicago’s Goolsbee and New York Fed President John Williams later in the week will also be key.

• US PPI release (Friday) – higher reading could tighten expectations
• Fed speeches from Goolsbee and Williams – potential for more hawkish language
• BoE policy outlook – odds of a further hike remain at 75%

Frequently asked questions

Official data sources

• U.S. Bureau of Economic Analysis
• Bank of England

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This article is compiled from international market news for information only. It is not investment advice.