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GBP/USD Price Forecast: Hovers around 1.3400 with bearish pressure intact

  • GBP/USD may find primary support near the 1.3350 reversal zone.
  • The 14-day Relative Strength Index at 39 signals sustained bearish pressure.
  • The primary barrier lies at the nine-day EMA at 1.3476.

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

The 14-day Relative Strength Index (RSI), a momentum indicator, has slipped toward 39, showing fading bullish momentum after the earlier overbought reading and reinforcing the idea of corrective pressure within a broader range rather than a clear trend reversal.

The near-term bias is bearish as spot holds below the 50- and nine-day Exponential Moving Averages (EMAs), which caps recovery attempts.

The immediate support lies at the reversal zone around 1.3350. Further declines would put downward pressure on the descending channel around 1.3170, followed by the 10-month low at 1.3010.

On the upside, the primary barrier is seen at the nine-day EMA at 1.3476, followed by the 50-day EMA at 1.3514. Further advances above these averages would improve the momentum and expose the upper descending channel boundary around 1.3630. A break above the channel would support the bullish bias and support the GBP/USD pair to test the 1.3869, the highest since September 2021, reached on January 27.

(The story was corrected on March 3 at 08:19 GMT to say in the third paragraph to say "spot holds below the 50- and nine-day EMAs.)

GBP/USD: Daily Chart

(The technical analysis of this story was written with the help of an AI tool.)

Pound Sterling 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 Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD-0.02%-0.02%-0.03%-0.06%-0.27%-0.04%0.05%
EUR0.02%-0.00%0.00%-0.04%-0.25%-0.03%0.07%
GBP0.02%0.00%0.00%-0.04%-0.25%-0.03%0.07%
JPY0.03%0.00%0.00%-0.03%-0.24%-0.03%0.08%
CAD0.06%0.04%0.04%0.03%-0.21%0.00%0.11%
AUD0.27%0.25%0.25%0.24%0.21%0.22%0.32%
NZD0.04%0.03%0.03%0.03%-0.01%-0.22%0.10%
CHF-0.05%-0.07%-0.07%-0.08%-0.11%-0.32%-0.10%

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

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.

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GBP/USD Price Forecast: Hovers around 1.3400 with bearish pressure intact