GBP/USD Forecast: Pound Sterling could face next resistance at 1.2440
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- GBP/USD climbed above 1.2400 in the European morning on Monday.
- The pair could face next resistance at 1.2440.
- Pound Sterling remains technically overbought following the latest rally.
Following a quiet Asian session, GBP/USD gathered bullish momentum and touched its highest level in 7 weeks above 1.2400 on Monday. The pair turned technically overbought but buyers could remain interested in case 1.2400 stays intact as support.
The Unemployment Rate in the US edged higher to 3.9% in October from 3.8% in December, with Nonfarm Payrolls increasing by a weaker-than-forecast 150,000 in that period. The US Dollar (USD) continued to weaken against its major rivals after October jobs report and GBP/USD registered impressive gains ahead of the weekend.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the strongest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.14% | -0.27% | -0.18% | 0.09% | 0.11% | 0.09% | -0.30% | |
| EUR | 0.14% | -0.12% | -0.04% | 0.22% | 0.24% | 0.22% | -0.16% | |
| GBP | 0.26% | 0.12% | 0.08% | 0.35% | 0.36% | 0.34% | -0.04% | |
| CAD | 0.18% | 0.04% | -0.09% | 0.27% | 0.28% | 0.26% | -0.12% | |
| AUD | -0.09% | -0.23% | -0.36% | -0.27% | 0.02% | 0.00% | -0.39% | |
| JPY | -0.11% | -0.25% | -0.59% | -0.27% | 0.02% | -0.02% | -0.41% | |
| NZD | -0.09% | -0.22% | -0.34% | -0.26% | 0.01% | 0.02% | -0.38% | |
| CHF | 0.28% | 0.14% | 0.02% | 0.10% | 0.37% | 0.39% | 0.37% |
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Early Monday, the USD stays on the back foot and allows GBP/USD to continue to stretch higher. In the absence of high-impact data releases, the risk perception could impact the USD's valuation in the American session.
US stock index futures were last seen rising around 0.1% on the day. If Wall Street's main indexes struggle to build on the previous week's gains after the opening bell, the USD could show some resilience and limit GBP/USD's upside.
In the meantime, investors will pay close attention to the action in bond markets. Following the Federal Reserve's policy announcements and the labor market data, the benchmark 10-year US Treasury bond yield fell more than 7% in the second half of the previous week. If the 10-year US yield retreats below 4.5%, the USD could come under renewed bearish pressure. On the other hand, a correction in yields could support the currency.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart rose to 80 early Monday, highlighting extremely overbought conditions in the near term. 1.2400 (Fibonacci 50% retracement of the latest downtrend) aligns as immediate support for GBP/USD. A 4-hour close below that level could open the door to an extended correction toward 1.2340 (static level) and 1.2300 (Fibonacci 38.2% retracement).
In case GBP/USD stabilizes above 1.2400 following a correction, buyers could remain interested. In this scenario, 1.2440 (static level) aligns as first resistance ahead of 1.2470 (Fibonacci 61.8% retracement) and 1.2500 (psychological level).
- GBP/USD climbed above 1.2400 in the European morning on Monday.
- The pair could face next resistance at 1.2440.
- Pound Sterling remains technically overbought following the latest rally.
Following a quiet Asian session, GBP/USD gathered bullish momentum and touched its highest level in 7 weeks above 1.2400 on Monday. The pair turned technically overbought but buyers could remain interested in case 1.2400 stays intact as support.
The Unemployment Rate in the US edged higher to 3.9% in October from 3.8% in December, with Nonfarm Payrolls increasing by a weaker-than-forecast 150,000 in that period. The US Dollar (USD) continued to weaken against its major rivals after October jobs report and GBP/USD registered impressive gains ahead of the weekend.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the strongest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.14% | -0.27% | -0.18% | 0.09% | 0.11% | 0.09% | -0.30% | |
| EUR | 0.14% | -0.12% | -0.04% | 0.22% | 0.24% | 0.22% | -0.16% | |
| GBP | 0.26% | 0.12% | 0.08% | 0.35% | 0.36% | 0.34% | -0.04% | |
| CAD | 0.18% | 0.04% | -0.09% | 0.27% | 0.28% | 0.26% | -0.12% | |
| AUD | -0.09% | -0.23% | -0.36% | -0.27% | 0.02% | 0.00% | -0.39% | |
| JPY | -0.11% | -0.25% | -0.59% | -0.27% | 0.02% | -0.02% | -0.41% | |
| NZD | -0.09% | -0.22% | -0.34% | -0.26% | 0.01% | 0.02% | -0.38% | |
| CHF | 0.28% | 0.14% | 0.02% | 0.10% | 0.37% | 0.39% | 0.37% |
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Early Monday, the USD stays on the back foot and allows GBP/USD to continue to stretch higher. In the absence of high-impact data releases, the risk perception could impact the USD's valuation in the American session.
US stock index futures were last seen rising around 0.1% on the day. If Wall Street's main indexes struggle to build on the previous week's gains after the opening bell, the USD could show some resilience and limit GBP/USD's upside.
In the meantime, investors will pay close attention to the action in bond markets. Following the Federal Reserve's policy announcements and the labor market data, the benchmark 10-year US Treasury bond yield fell more than 7% in the second half of the previous week. If the 10-year US yield retreats below 4.5%, the USD could come under renewed bearish pressure. On the other hand, a correction in yields could support the currency.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart rose to 80 early Monday, highlighting extremely overbought conditions in the near term. 1.2400 (Fibonacci 50% retracement of the latest downtrend) aligns as immediate support for GBP/USD. A 4-hour close below that level could open the door to an extended correction toward 1.2340 (static level) and 1.2300 (Fibonacci 38.2% retracement).
In case GBP/USD stabilizes above 1.2400 following a correction, buyers could remain interested. In this scenario, 1.2440 (static level) aligns as first resistance ahead of 1.2470 (Fibonacci 61.8% retracement) and 1.2500 (psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.