GBP/USD Price Forecast: Attracts slight bids below trendline near 1.3360

The British Pound (GBP) climbed slightly against the US Dollar (USD), reaching 1.3372 during the European session on Friday. This upward movement came after the UK's Retail Sales for August exceeded expectations, growing by 0.5% month-over-month despite a decline in the previous month. The Office for National Statistics reported this data, which was initially anticipated to decline by 0.2%.

While the GBP responded positively to the retail sales figures, it underperformed in relation to the overall data-filled week and the Bank of England's (BoE) decision to keep interest rates unchanged at 3.75%. The BoE maintained its cautious stance, anticipating inflation to rise to around 3.75% by the end of the year and slightly above 4% in early 2027.

The US Dollar, on the other hand, traded firmly on expectations of the Federal Reserve's (Fed) interest rate hike. The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, hit a fresh six-week high at 100.38. In technical analysis, GBP/USD is currently trading below the 20-period Exponential Moving Average (EMA) at 1.3484 and close to the downtrend resistance line of 1.3372. This suggests that rallies are vulnerable, while selling pressure may be nearing its end.