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  • GBP/USD is stuck at key falling trendline resistance at 1.2965. 
  • Dovish BOE expectations could keep gains in GBP under the check. 

GBP/USD is struggling to clear resistance of the trendline falling from December and January highs on Friday despite the slide in the US treasury yields.

The currency pair is currently trading near 1.2955, having failed to take out the trendline hurdle at 1.2965 during the Asian trading hours. 

US yields slide

The persistent risk aversion mood continues to weigh over the US treasury yields. The 10-year yield is trading at a record low of 0.892% at press time, having declined by 16 basis points on Thursday. The 30-year yield has also hit record lows and the two-year yield is trading at 44-month lows. 

As a result, the US dollar is flashing red against the euro and the Japanese yen. However, the British Pound is struggling to extend its three-day winning run. 

The buying interest around the GBP seems to have weakened on dovish BOE expectations. The money markets expect the Bank of England (BOE) to cut rates by 25 basis points this month. Meanwhile, Goldman Sachs thinks the BOE will deliver a 50 basis point rate cut. 

The currency pair may come under pressure in Europe if the trendline hurdle holds. On the data front, the focus will be on the UK Halifax House Prices and the US Nonfarm Payrolls report. 

Technical levels