GBP/USD Price Analysis: Slips below 1.3000, signaling a potential correction
- GBP/USD could further lose ground as the 14-day RSI hints at an impending correction.
- The pair could test the psychological resistance at the 1.3000 level.
- The immediate support is anticipated near the upper boundary of the ascending channel, around the 1.2900 level.
GBP/USD declines slightly, hovering around 1.2970 in Monday's Asian session after retreating from Friday's peak of 1.2990, the highest since July 2023. The analysis of the daily chart shows a breakout above an ascending channel, signaling a bullish trend in the pair's price movements.
Moreover, the Moving Average Convergence Divergence (MACD) indicator reflects short-term bullish momentum, with the MACD line above the centerline and diverging positively from the signal line.
However, the 14-day Relative Strength Index (RSI) sits marginally above the 70 level, confirming the bullish trend while also suggesting potential overbought conditions. A potential decline could indicate a weakening bullish sentiment, possibly hinting at an impending correction.
In terms of resistance, the GBP/USD pair could test the psychological level of 1.3000. A breakthrough above this level could provide support for the pair to explore the region around the key level of 1.3100.
On the downside, the immediate support appears around the upper boundary of the ascending channel at the 1.2900 level. A return to the ascending channel could contribute support for the pair to reach the nine-day Exponential Moving Average (EMA) at 1.2863.
A break below the nine-day EMA could lead the GBP/USD pair to test the lower boundary of the ascending channel at the level of 1.2770. Further support could be found around the throwback support level of 1.2615.
GBP/USD: 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 weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.12% | 0.09% | -0.11% | 0.09% | 0.15% | 0.14% | 0.14% | |
| EUR | -0.12% | 0.00% | -0.02% | 0.17% | 0.06% | 0.24% | 0.21% | |
| GBP | -0.09% | -0.01% | 0.06% | 0.17% | 0.05% | 0.17% | 0.20% | |
| JPY | 0.11% | 0.02% | -0.06% | 0.21% | 0.04% | 0.21% | 0.06% | |
| CAD | -0.09% | -0.17% | -0.17% | -0.21% | -0.02% | 0.03% | 0.03% | |
| AUD | -0.15% | -0.06% | -0.05% | -0.04% | 0.02% | 0.15% | 0.15% | |
| NZD | -0.14% | -0.24% | -0.17% | -0.21% | -0.03% | -0.15% | -0.01% | |
| CHF | -0.14% | -0.21% | -0.20% | -0.06% | -0.03% | -0.15% | 0.01% |
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
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
