- GBP/USD is recording decent gains after nosediving to a 1985 daily low.
- The British pound found some base around 1.1400, rallying more than 130-pips on the day.
- The major might record a leg-up before extending its fall for a re-test of the YTD low at a1.1406.
The GBP/USD refreshed a 37-year low but bounced off and reclaimed the 1.1500 figure after meandering around the 1.1400 round figure during the day. The GBP/USD recovered some ground and settled at current exchange rates, trading at 1.1531, above its opening price by 0.18%, at the time of writing.
GBP/USD Price Analysis: Technical outlook
The GBP/USD trades were volatile during Wednesday’s trading session. The major is still downward biased, despite recovering more than 100-pips losses. It is worth noting that the Sterling dropped below the descending channel, where the major has been trading since late May, when the British pound began its downfall throughout 2022.
GBP traders should know that the Relative Strength Index (RSI) is within the oversold territory, so the pair might print a leg-up before resuming its downward path. Therefore, the GBP/USD’s first resistance would be the September 6 daily high at 1.1608. Once cleared, the next supply zone would be the 50% Fibonacci retracement at 1.1652, followed by the 61.8% Fibonacci level at 1.1710.
On the downside, the GBP/USD first floor would be the 1.1500 figure. The break below will expose the YTD low at 1.1400, followed by the psychological 1.1300 figure.
GBP/USD Key Technical Levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD nears 1.0800 on broad US Dollar weakness
Optimism continues to undermine demand for the American currency ahead of the weekly close. EUR/USD hovers around weekly highs just ahead of the 1.0900 figure.
GBP/USD reconquers 1.2500 with upbeat UK GDP
Following BOE-inspired slump on Thursday, the British Pound changed course and trades around 1.2530. Better-than-anticipated UK GDP and a weaker USD behind the advance.
Gold resumes advance and trades above $2,370
XAU/USD accelerated its recovery on Friday, as investors drop the USD. Dismal US employment-related figures revived hopes for a soon-to-come rate cut from the Fed.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Euro area annual inflation is expected to be 2.4% in April 2024
Euro area annual inflation is expected to be 2.4% in April 2024, stable compared to March. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in April.