- The GBP/USD currency pair continues to fall amid tender performance in key UK economic indicators and rising geopolitical concerns.
- Technical analysis indicates the potential for this pair to test significant support at 1.2445 and possibly the year-to-date low of 1.2299.
- The RSI indicates oversold conditions, which suggests robust bearish pressure, but not yet at extreme levels.
Sterling extends its losses against the US dollar for the third day in a row, losing 0.47% after preliminary UK PMI and retail sales data disappointed investors. This and increased geopolitical tensions caused by the Russian-Ukrainian and Middle East conflicts have strengthened the US currency. At the time of writing, GBP/USD is trading at 1.2529, having hit an intraday high of 1.2594.
GBP/USD is hovering around 1.2520; market players are waiting for next week’s US-British trial
Market sentiment changed to positive, limiting the growth of Greenback’s stock. While GBP/USD remains under pressure, next week’s economic developments will be key in providing direction.
In the UK there will be little economic documentation. First, Clare Lombardelli, deputy governor of the Bank of England (BoE), will deliver a speech on Monday, followed by the publication of the CBI Distributive Trades announcement. Next will be Auto Production, Nationwide Housing Prices and the Financial Stability Report.
On the other side of the ocean, the US schedule will include housing data, the release of the Federal Reserve’s latest meeting minutes, robust goods orders, and the release of the Fed’s preferred inflation measure, the Price Index for Basic Personal Consumption Expenditures (PCE),
GBP/USD Price Forecast: Technical Outlook
The GBP/USD pair is trending lower, deepening its bearish bias. Sellers expect intermediate support at 1.2445, the May 9 low. In case of a breakout, the pair could refresh the year-to-date (YTD) lows of 1.2299 that were reached on April 22.
Indicators such as the Relative Strength Index (RSI) were found to be oversold below the 30 level. Nevertheless, it did not reach the extreme levels usually seen in persistent trends. In the case of a downtrend, the level of 20 would suggest the GBP/USD pair is oversold.
Conversely, if the bulls move in and break 1.2600, the next resistance look for a test of the November 20 highs at 1.2714. If it is broken, the next stop will be the 200-day plain moving average (SMA) at 1.2818.
GBP/USD price chart – daily
PRICE OF THE British Pound today
The table below shows the current percentage change of the British Pound (GBP) against the major listed currencies. The British pound was strongest against the Swiss franc.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.72% | 0.63% | 0.25% | 0.10% | 0.25% | 0.57% | 0.94% | |
| EUR | -0.72% | -0.08% | -0.45% | -0.61% | -0.44% | -0.14% | 0.23% | |
| GBP | -0.63% | 0.08% | -0.37% | -0.53% | -0.38% | -0.06% | 0.31% | |
| JPY | -0.25% | 0.45% | 0.37% | -0.15% | 0.00% | 0.31% | 0.69% | |
| BOOR | -0.10% | 0.61% | 0.53% | 0.15% | 0.14% | 0.47% | 0.84% | |
| AUD | -0.25% | 0.44% | 0.38% | 0.00% | -0.14% | 0.33% | 0.72% | |
| NZD | -0.57% | 0.14% | 0.06% | -0.31% | -0.47% | -0.33% | 0.36% | |
| CHF | -0.94% | -0.23% | -0.31% | -0.69% | -0.84% | -0.72% | -0.36% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select British Pound from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
