GBP/USD Price Forecast: Sees modest gains below 1.2700
- GBP/USD advances slightly by 0.15% following positive US Retail Sales.
- Technical indicators suggest potential challenges; a 'death cross' looms as the 50-day SMA approaches the 200-day SMA.
- Resistance noted at the December 12 high of 1.2787; support levels are at 1.2608 and potentially lower towards 1.2299 YTD low.
The GBP/USD advances modestly by some 0.15% following the release of solid US Retail Sales data, which put a lid on the pair’s advance. UK labor market data delivered during the European session was mixed, with the economy adding 173K jobs to the workforce in October, ahead of the release of the UK Autumn budget. At the time of writing, the pair trades at 1.2702.
GBP/USD Price Forecast: Technical outlook
The GBP/USD daily chart suggests the pair is neutral to downward biased, yet in the near term, it is skewed to the upside. Buyers need to clear decisively the 1.2700 mark.
Momentum remains bearish, with the Relative Strength Index (RSI) trending up below its neutral line. This and the imminent ‘death cross’ in the GBP/USD with the 50-day Simple Moving Average (SMA) about to cross below the 200-day SMA could pave the way for further losses.
That said, if GBP/USD fails to finish Tuesday’s session above 1.2700, it could expose the current week’s low of 1.2608. If surpassed, sellers could drive prices to 1.2486 on November 22, followed by the May 9 low of 1.2445. On further weakness, the year-to-date (YTD) low would be up for grabs at 1.2299.
Conversely, if GBP/USD edges up and clears the December 12 peak of 1.2787, it will expose the confluence of the 200-day SMA and 50-day SMA at around 1.2817/1.2822.
GBP/USD Price Chart – Daily
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.06% | -0.35% | 0.27% | 0.31% | 0.24% | 0.08% | |
| EUR | 0.01% | -0.05% | -0.36% | 0.28% | 0.32% | 0.24% | 0.08% | |
| GBP | 0.06% | 0.05% | -0.27% | 0.33% | 0.37% | 0.29% | 0.15% | |
| JPY | 0.35% | 0.36% | 0.27% | 0.63% | 0.67% | 0.58% | 0.45% | |
| CAD | -0.27% | -0.28% | -0.33% | -0.63% | 0.04% | -0.03% | -0.18% | |
| AUD | -0.31% | -0.32% | -0.37% | -0.67% | -0.04% | -0.08% | -0.24% | |
| NZD | -0.24% | -0.24% | -0.29% | -0.58% | 0.03% | 0.08% | -0.14% | |
| CHF | -0.08% | -0.08% | -0.15% | -0.45% | 0.18% | 0.24% | 0.14% |
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
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
