GBP/USD Price Forecast: Rebounds above 1.2700 on risk-on mood

GBP/USD climbs above 1.2700 as risk sentiment improves.
Technical outlook: Neutral to bearish; key support at August 6 low (1.2672) and 200-DMA (1.2651).
For bullish momentum, GBP/USD needs to hold above 1.2700 and aim for 50-DMA at 1.2785 and the 1.2800 mark.

Christian Borjon Valencia FXStreet

The Pound Sterling bounced off daily/weekly lows and rose above the 1.2700 figure on Wednesday as risk appetite improved after a Bank of Japan (BoJ) official commented the BoJ wouldn’t raise rates amid market instability. Therefore, the GBP/USD trades at 1.2720 after touching a low of 1.2680.

GBP/USD Price Forecast: Technical outlook

The GBP/USD is neutral to bearishly biased after diving below the 50-day moving average (DMA) at 1.2785. Sellers piercing of the latter sounded buyers’ alarms, which entered below the 1.2700 mark, yet remained in the backfoot as the Greenback strengthened.

The August 6^th low at 1.2672 could be tested if GBP/USD slips under 1.2700, and losses could be deeper if it slumps beneath the 200-DMA at 1.2651.

Conversely, if buyers keep the GBP/USD above 1.2700 and lift the spot price toward the 50-DMA, that could exacerbate a test of the 1.2800 mark.

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 Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.02%	-0.25%	2.21%	-0.45%	-0.62%	-1.21%	1.68%
EUR	0.02%		-0.24%	2.24%	-0.44%	-0.63%	-1.18%	1.72%
GBP	0.25%	0.24%		2.46%	-0.20%	-0.40%	-0.90%	1.95%
JPY	-2.21%	-2.24%	-2.46%		-2.59%	-2.79%	-3.31%	-0.52%
CAD	0.45%	0.44%	0.20%	2.59%		-0.18%	-0.72%	2.15%
AUD	0.62%	0.63%	0.40%	2.79%	0.18%		-0.50%	2.36%
NZD	1.21%	1.18%	0.90%	3.31%	0.72%	0.50%		2.87%
CHF	-1.68%	-1.72%	-1.95%	0.52%	-2.15%	-2.36%	-2.87%

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.

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