|

GBP/USD Price Forecast: Extends losing streak, slides below 1.3150

  • GBP/USD shows upward bias on daily chart, yet short-term RSI presents mixed signals.
  • Hourly chart reveals bearish trend with the pair below 50, 100, and 200-HMAs; sellers aim for 1.3108 and potentially 1.3100.
  • Additional supports at August 22 low of 1.3076 and August 20 high of 1.3052.
  • Buyers reclaiming 200-HMA at 1.3148 could push recovery to 1.3182 (50-HMA) and 1.3200.

The GBP/USD extends its losing streak to three days yet has bounced off daily/weekly lows of 1.3129 and exchanges hands at 1.3149, down a modest 0.14%. Data from the United States (US) spurred a leg-down in the currency pair as the Fed’s preferred gauge for inflation came as expected, hinting that the US Federal Reserve could cut rates at the upcoming September meeting.

GBP/USD Price Forecast: Technical outlook

Daily, the GBP/USD remains upward biased despite retreating toward the 1.3120 area. In the short term, sellers are in charge, as revealed by the Relative Strength Index (RSI), which is bullish but aiming lower and showing mixed readings.

Zooming into the hourly chart, the GBP/USD is bearishly biased, as the exchange rate remains below the 50, 100, and 200-hour moving averages (HMAs), with sellers eyeing last Friday's low of 1.3108. Once cleared could pave the way for testing the 1.3100 figure. A further downside is seen at the August 22 swing low of 1.3076, ahead of the August 20 high at 1.3052.

If GBP/USD buyers reclaim the 200-HMA at 1.3148, this could sponsor a recovery toward the 50-HMA at 1.3182 ahead of 1.3200.

GBP/USD Price Action – Hourly 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 Japanese Yen.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.02%0.11%0.38%-0.06%0.16%-0.02%0.19%
EUR-0.02% 0.08%0.39%-0.09%0.15%-0.06%0.17%
GBP-0.11%-0.08% 0.29%-0.17%0.07%-0.14%0.06%
JPY-0.38%-0.39%-0.29% -0.43%-0.19%-0.40%-0.20%
CAD0.06%0.09%0.17%0.43% 0.23%0.05%0.23%
AUD-0.16%-0.15%-0.07%0.19%-0.23% -0.20%0.00%
NZD0.02%0.06%0.14%0.40%-0.05%0.20% 0.20%
CHF-0.19%-0.17%-0.06%0.20%-0.23%-0.01%-0.20% 

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

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

More from Christian Borjon Valencia
Share:

Editor's Picks

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.