|

GBP/USD Price Forecast: Targets 1.3500 barrier near moving averages

  • GBP/USD could find the primary support lies at the reversal zone around 1.3350.
  • The 14-day Relative Strength Index at 40 signals sustained bearish pressure while remaining above oversold levels.
  • The immediate barrier lies at the nine-day EMA at 1.3504.

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. 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, is at 40 points to sustained bearish pressure without oversold conditions, suggesting sellers retain control but lack capitulation extremes.

The near-term bias is mildly bearish as spot holds below the nine-day Exponential Moving Average (EMA) and slides toward the flatter 50-day average, indicating fading upside momentum.

The initial support lies at the reversal zone around 1.3350. The proximity to the 50-day EMA could attract dip-buying interest toward the descending channel around 1.3140, followed by the 10-month low at 1.3010.

On the upside, the immediate barrier is seen at the nine-day EMA at 1.3504, followed by the 50-day EMA at 1.3518. A break above these averages would improve the momentum and expose the upper descending channel boundary around 1.3630. Further advances above the channel would cause the emergence of the bullish bias and support the GBP/USD pair to test the 1.3869, the highest since September 2021, reached on January 27.

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 Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.22%0.21%0.08%0.05%0.17%0.20%-0.03%
EUR-0.22%-0.02%-0.15%-0.16%-0.05%-0.02%-0.24%
GBP-0.21%0.02%-0.13%-0.15%-0.04%-0.01%-0.23%
JPY-0.08%0.15%0.13%-0.01%0.10%0.14%-0.09%
CAD-0.05%0.16%0.15%0.00%0.11%0.14%-0.08%
AUD-0.17%0.05%0.04%-0.10%-0.11%0.04%-0.19%
NZD-0.20%0.02%0.00%-0.14%-0.14%-0.04%-0.23%
CHF0.03%0.24%0.23%0.09%0.08%0.19%0.23%

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.

More from Akhtar Faruqui
Share:

Editor's Picks

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation
We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”
9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?
The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.