GBP/USD Price Analysis: Slips below 1.2800 amid market turmoil
- GBP/USD falls to 1.2772, down 0.20%, following significant losses in global markets.
- Technicals show bearish momentum; RSI suggests further declines.
- Key supports: August 2 low at 1.2707, 100-DMA at 1.2683, 200-DMA at 1.2645.
- For bullish reversal, GBP/USD needs to pass 50-DMA at 1.2786 and August 2 high at 1.2840, aiming for 1.2860 and 1.2900.
The Pound Sterling edges lower after trimming some of its earlier losses due to a bloodbath in the financial markets, led by Asian equities, which triggered circuit breakers halting trading as losses deepened. The GBP/USD trades at 1.2772, down by 0.20%.
GBP/USD Price Analysis: Technical outlook
Last Friday, the GBP/USD seemed poised to test higher prices, but due to risk aversion and investors seeking safety, the Cable was under pressure during the Asian and European sessions.
Momentum, as depicted by the Relative Strength Index (RSI), shifted bearishly, and with sellers in charge, further losses loom.
As of writing, the GBP/USD has fallen below 1.2800, and the 50-day moving average (DMA) is at 1.2786, leading for a deeper pullback. If the pair slides below the August 2 low of 1.2707, that could pave the way to test the 100-DMA at 1.2683. A breach of the latter will expose the 200-DMA at 1.2645, which, once broken, would shift and turn the pair bearish.
For a bullish reversal, the GBP/USD must clear the 50-DMA and the August 2 peak at 1.2840. Once hurdle, the next resistance will be the June 12 high at 1.2860, ahead of 1.2900.
GBP/USD Price Action – Daily Chart
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 | -0.50% | 0.38% | -2.39% | -0.24% | 0.43% | 0.32% | -1.05% | |
| EUR | 0.50% | 0.80% | -2.06% | 0.14% | 0.95% | 0.72% | -0.66% | |
| GBP | -0.38% | -0.80% | -2.77% | -0.64% | 0.14% | -0.08% | -1.45% | |
| JPY | 2.39% | 2.06% | 2.77% | 2.27% | 2.87% | 2.83% | 1.44% | |
| CAD | 0.24% | -0.14% | 0.64% | -2.27% | 0.71% | 0.56% | -0.99% | |
| AUD | -0.43% | -0.95% | -0.14% | -2.87% | -0.71% | -0.23% | -1.59% | |
| NZD | -0.32% | -0.72% | 0.08% | -2.83% | -0.56% | 0.23% | -1.37% | |
| CHF | 1.05% | 0.66% | 1.45% | -1.44% | 0.99% | 1.59% | 1.37% |
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 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).
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
