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GBP/USD Price Forecast: Slips below 1.3000 on risk aversion

  • GBP/USD begins the week down, struggling to hold above 1.3000.
  • Sellers eye key support at last week’s low of 1.2973, with further downside targets at the 100-DMA and the 200-DMA, each at 1.2959 and 1.2796.
  • Buyers must reclaim 1.3100 to challenge the 50-DMA at 1.3133 and aim for the YTD high of 1.3434.

The Pound Sterling is losing some ground against the Greenback. Increasing tensions in the Middle East are spurring a risk-off environment despite China’s efforts to propel its economy. At the time of writing, the GBP/USD trades at 1.2997, down 0.38%.

GBP/USD Price Forecast: Technical outlook

The GBP/USD begins the week on the back foot after opening at around 1.3039. Since then, the pair hit a 1.3057 high before sliding beneath the 1.3000 mark.

Momentum suggests that sellers are in charge, as portrayed by the Relative Strength Index (RSI). However, they must clear last week’s low of 1.2973 before challenging the 100-day moving average (DMA) at 1.2959, aiming to push prices toward the 200-DMA at 1.2796.

On the other hand, buyers must lift the GBP/USD spot price above 1.3100 so they can test the 50-DMA at 1.3133 as they prepare to challenge the year-to-date (YTD) high at 1.3434.

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 Australian Dollar.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.34%0.47%0.47%0.19%0.64%0.54%0.14%
EUR-0.34% 0.06%0.03%-0.09%0.27%0.09%-0.30%
GBP-0.47%-0.06% -0.02%-0.27%0.18%0.07%-0.40%
JPY-0.47%-0.03%0.02% -0.27%0.17%0.12%-0.40%
CAD-0.19%0.09%0.27%0.27% 0.35%0.40%-0.20%
AUD-0.64%-0.27%-0.18%-0.17%-0.35% -0.03%-0.60%
NZD-0.54%-0.09%-0.07%-0.12%-0.40%0.03% -0.47%
CHF-0.14%0.30%0.40%0.40%0.20%0.60%0.47% 

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.

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