GBP/USD under pressure as UK consumer confidence hits 3-month low

GBP/USD faces renewed downside pressure following a sharp decline in UK consumer confidence, which fell to a three-month low according to the latest GfK survey. The deterioration was driven primarily by weaker perceptions of personal finances, with rising unemployment weighing heavily on household sentiment. Official data revealed the UK jobless rate climbed to 5.2% in Q4 2025, its highest level since January 2021, marking a near five-year peak. GfK's Neil Bellamy noted that concerns about job security are intensifying amid the labor market weakness. Adding to the bearish outlook, UK car production dropped 8%, signaling broader economic softness in the manufacturing sector. Despite some tentative signs of resilience elsewhere in the economy, the combination of falling consumer confidence and rising unemployment raises questions about the Bank of England's policy trajectory. Traders should monitor upcoming UK GDP and retail sales data for further confirmation of economic slowdown. Key support for GBP/USD lies at recent lows, with resistance capped by deteriorating fundamentals.