GBP/USD Price Forecast: Falls deeper below 1.3000 on strong US Dollar

Source Fxstreet
  • GBP/USD turns bearish, with RSI signaling potential for further downside below 1.2900.
  • Key support lies at 1.2894; a break may lead to 200-day SMA at 1.2814.
  • Upside capped by 100-day SMA at 1.2990; clearing 1.3000 could target 1.3105 resistance.

The Pound Sterling dropped from around 1.2980 on Friday as the Greenback recovered some ground following Thursday’s losses. Risk aversion has seen flows into the buck; hence, the GBP/USD trades at 1.2938, down over 0.37%.

GBP/USD Price Forecast: Technical outlook

Once the GBP/USD fell below the 1.3000 figure, it turned neutral to slightly downward biased. Although the pair edged towards 1.2988 on Thursday, failure to clear the 1.30 mark exacerbated the drop toward the mid 1.2900 – 1.3000 range.

Oscillators turned bearish as seen on the Relative Strength Index (RSI). This, and price action, opened the door for further downside on the major.

The first key support would be the March 8 low of 1.2894. Once cleared, June’s 12 resistance turned support would be up next at 1.2880, ahead of dropping toward the 200-day Simple Moving Average (SMA) at 1.2814. Once surpassed up next would be the 1.2800 mark

Conversely, if buyers lift the exchange rate past the 100-day SMA at 1.2990, they could challenge 1.3000. If surpassed, the next stop would be the confluence of the October 15 high and the 50-DMA at 1.3105.

GBP/USD Price Chart – Daily

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.47% 0.36% -0.11% 0.27% 1.00% 0.66% 0.24%
EUR -0.47%   -0.11% -0.54% -0.20% 0.53% 0.20% -0.24%
GBP -0.36% 0.11%   -0.43% -0.09% 0.65% 0.30% -0.13%
JPY 0.11% 0.54% 0.43%   0.38% 1.10% 0.76% 0.33%
CAD -0.27% 0.20% 0.09% -0.38%   0.72% 0.39% -0.03%
AUD -1.00% -0.53% -0.65% -1.10% -0.72%   -0.34% -0.77%
NZD -0.66% -0.20% -0.30% -0.76% -0.39% 0.34%   -0.43%
CHF -0.24% 0.24% 0.13% -0.33% 0.03% 0.77% 0.43%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick 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).

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Yesterday 01: 14
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US DollarThe Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
Author  FXStreet
Yesterday 08: 58
The Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
14 hours ago
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
placeholder
Gold Price Forecast: XAU/USD retraces gains and nears two-month lows at $4,104Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Author  FXStreet
5 hours ago
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Related Instrument
goTop
quote