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.
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.
