GBP/USD Price Forecast: Tests seven-month lows below 1.2500

GBP/USD tests its seven-month low at 1.2487.
An upward correction would be indicated once the 14-day RSI breaks below the 30 mark.
The primary resistance zone appears around its nine-day EMA at 1.2606, followed by the descending channel's upper boundary.

Akhtar Faruqui FXStreet

GBP/USD continues to lose ground for the third consecutive day, trading around 1.2490 during the Asian hours on Friday. The daily chart analysis suggests an ongoing bearish bias as the pair is confined within the descending channel pattern.

However, the 14-day Relative Strength Index (RSI) falls to near the 30 level, suggesting a strengthening of a bearish bias. A decisive break below the 30 mark would indicate an oversold situation and a potential for an upward correction soon.

On the downside, the GBP/USD pair hovers around its seven-month low at 1.2487, recorded on November 22. A successful break below this level could amplify bearish momentum, potentially driving the pair toward its yearly low at 1.2299, last seen on April 22, followed by the lower boundary of the descending channel 1.2260 level.

Regarding resistance, the GBP/USD pair may revisit its nine-day Exponential Moving Average (EMA) at 1.2606, followed by the 14-day EMA at 1.2635, aligned with the descending channel's upper boundary. A successful break above this critical region could weaken the bearish bias, paving the way for a move toward the five-week high of 1.2811, marked on December 6.

GBP/USD: 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 weakest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.09%	0.16%	-0.03%	0.21%	0.26%	0.21%	0.00%
EUR	-0.09%		0.07%	-0.10%	0.13%	0.17%	0.11%	-0.09%
GBP	-0.16%	-0.07%		-0.18%	0.05%	0.08%	0.04%	-0.14%
JPY	0.03%	0.10%	0.18%		0.24%	0.28%	0.20%	0.04%
CAD	-0.21%	-0.13%	-0.05%	-0.24%		0.04%	-0.01%	-0.20%
AUD	-0.26%	-0.17%	-0.08%	-0.28%	-0.04%		-0.07%	-0.24%
NZD	-0.21%	-0.11%	-0.04%	-0.20%	0.00%	0.07%		-0.18%
CHF	-0.01%	0.09%	0.14%	-0.04%	0.20%	0.24%	0.18%

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

FXStreet

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.