GBP/USD Price Forecast: Bears gather steam, push prices below 1.3100

GBP/USD consolidates within the 1.3060-1.3140 range, with sellers maintaining control after last week's US jobs report boosted the Greenback.
The pair is downward biased after falling below the 50-DMA, with key support at the September 11 low of 1.3001 and the 100-DMA at 1.2935.
A break above 1.3100 could signal a reversal, with resistance at 1.3200, followed by the October 3 peak of 1.3269.

Christian Borjon Valencia FXStreet

The British Pound lost some ground against the Greenback on Wednesday as traders await minutes of the Federal Reserve’s last meeting and US inflation data on Thursday. At the time of writing, the GBP/USD trades at 1.3070, below its opening price by 0.26%.

GBP/USD Price Forecast: Technical outlook

The GBP/USD has consolidated within the 1.3060-1.3140 range for the last three days. The lack of a catalyst keeps market players uncertain, though last week’s US jobs report boosted the Greenback, which reached levels last seen in August 2024.

Momentum hints that sellers are in charge, as portrayed by the bearish reading of the Relative Strength Index (RSI).

In the short term, the pair is downward biased. The drop below the 50-day moving average (DMA) at 1.3087 opened the door for further losses. However, if sellers want to remain in charge, they must drive the exchange rate to the September 11 swing low of 1.3001. If that level is cleared, the 100-DMA at 1.2935 would be up for grabs, followed by the 200-DMA at 1.2784.

Conversely, if GBP/USD reclaims 1.3100 and rallies above 1.3200, it would open the door for further upside. The next resistance would be October 3 peak at 1.3269, followed by the October 2 high at 1.3305.

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 New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.31%	0.24%	0.66%	0.30%	0.49%	1.35%	0.25%
EUR	-0.31%		-0.08%	0.33%	-0.04%	0.22%	0.99%	-0.08%
GBP	-0.24%	0.08%		0.41%	0.08%	0.29%	1.08%	-0.00%
JPY	-0.66%	-0.33%	-0.41%		-0.33%	-0.14%	0.69%	-0.42%
CAD	-0.30%	0.04%	-0.08%	0.33%		0.19%	1.03%	-0.07%
AUD	-0.49%	-0.22%	-0.29%	0.14%	-0.19%		0.81%	-0.29%
NZD	-1.35%	-0.99%	-1.08%	-0.69%	-1.03%	-0.81%		-1.09%
CHF	-0.25%	0.08%	0.00%	0.42%	0.07%	0.29%	1.09%

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

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold bounces off weekly low; Fed hike bets and modest USD recovery keep upside limited

Gold recovers slightly from the weekly low, around the $4,100 neighborhood, though the upside potential seems limited amid a bearish fundamental backdrop. Inflation risks stemming from volatile oil prices underpin prospects for further policy tightening by the US Federal Reserve. Furthermore, a modest US Dollar recovery from a near three-week low could contribute to capping bullion.

Zcash's bullish reversal eyes $1,698 peak on NU7 upgrade

Zcash (ZEC) shows signs of bullish recovery above $1,200 on Wednesday, following a 9% rebound the previous day linked to the upcoming NU7 upgrade. Blockworks released a Zcash holders report on Tuesday, highlighting steady network growth. The technical outlook for ZEC is bullish, with bulls eyeing an extended rally toward $1,698.

US – Midterm update: Pre-election tail risk scenarios

With two weeks until the US midterm elections on 3 November, early voting has already opened in more than 40 states. Prediction markets are broadly unchanged since we published our Midterm update, 13 October. The prediction market Polymarket continues to see Democrats winning both chambers as the most likely outcome, with a 62.5% probability.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.