- The GBP/USD pair is encountering resistance at 1.3340 and is forming a potential “shooting star” candle, heralding possible further declines.
- Key support is found at 1.3250, with additional levels at 1.3239, 1.3200 and the July 14 high at 1.3142.
- On the upside, GBP/USD needs to rebound from the 1.3300 level to retest the yearly high at 1.3340, with further resistance at 1.3437.
Sterling posted marginal gains against the US dollar during the North American session after hitting a two-and-a-half year high of 1.3340 on the back of an upbeat UK retail sales report. At the time of writing, GBP/USD is trading at 1.3282, up 0.03%.
GBP/USD Price Forecast: Technical Outlook
From a technical perspective, GBP/USD hit solid resistance as the pair topped a rising channel, just before testing 1.3350. The pair has since erased those gains, setting itself up for a ‘shooting star’ candle that opens the door to further losses.
Momentum remains bullish according to the Relative Strength Index (RSI). However, a negative divergence is approaching, which could trigger a pullback for the pair.
If GBP/USD falls below 1.3250, further declines are in sight. Once broken, the next stop would be the 6th September high at 1.3239, before 1.3200. If broken, key support levels would be exposed, such as the 14th July 2023 high at 1.3142, followed by the 11th September low at 1.3001.
Conversely, if GBP/USD reclaims the 1.3300 level, the first resistance will be the yearly high at 1.3340 ahead of the March 1, 2022 pivot high at 1.3437.
GBP/USD Price Action – Daily Chart
British pound exchange rate today
The table below shows the percentage change in the British Pound (GBP) against the major currencies traded today. The British Pound was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.10% | 1.21% | 0.19% | 0.45% | 0.40% | 0.39% | |
| EUR | -0.20% | -0.11% | 1.05% | -0.03% | 0.23% | 0.21% | 0.20% | |
| GBP | -0.10% | 0.11% | 1.15% | 0.10% | 0.36% | 0.33% | 0.32% | |
| JPY | -1.21% | -1.05% | -1.15% | -1.01% | -0.77% | -0.81% | -0.80% | |
| BOOR | -0.19% | 0.03% | -0.10% | 1.01% | 0.25% | 0.22% | 0.22% | |
| AUD | -0.45% | -0.23% | -0.36% | 0.77% | -0.25% | -0.01% | -0.02% | |
| NZD | -0.40% | -0.21% | -0.33% | 0.81% | -0.22% | 0.01% | -0.00% | |
| CHF | -0.39% | -0.20% | -0.32% | 0.80% | -0.22% | 0.02% | 0.00% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
