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GBP/USD Price Forecast: Tumbles to four week low, sellers eye 1.3000

  • GBP/USD fails to gain traction amid mixed US economic data.
  • Sellers remain in charge if prices remain below 1.3055; key support levels are eyed at 1.3001 and 1.2939.
  • Buyers could regain control above 1.3055 and target the 50-DMA

The Pound Sterling remains on the backfoot against the Greenback, yet it bounced off a four-week low of 1.3010 in early trading during the North American session. The GBP/USD exchanges hands at 1.3040, down 0.54% at the time of writing.

GBP/USD Price Forecast: Technical outlook

GBP/USD recovered some ground during Thursday’s session following the release of mixed US data. Although inflation edged up, the labor market showed signs of weakness.

Given the backdrop, the pair initially dipped to a daily low of 1.3010 before stabilizing at current exchange rates. Nevertheless, Pound bulls must reclaim the October 9 low of 1.3055 if they want to remain hopeful of higher prices.

In that outcome, bulls could challenge the 50-day moving average (DMA) and the day’s high of 1.3093. Further gains are seen above 1.3100.

Conversely, failure to regain 1.3055 and sellers could drive the exchange rate toward the September 11 low of 1.3001. Once those levels are surpassed, the GBP/USD could test the 100-DMA at 1.2939.

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 Canadian Dollar.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.15%0.31%-0.45%0.35%0.05%-0.27%-0.32%
EUR-0.15% 0.16%-0.60%0.19%-0.11%-0.38%-0.47%
GBP-0.31%-0.16% -0.76%0.05%-0.34%-0.53%-0.66%
JPY0.45%0.60%0.76% 0.80%0.47%0.18%0.11%
CAD-0.35%-0.19%-0.05%-0.80% -0.31%-0.57%-0.69%
AUD-0.05%0.11%0.34%-0.47%0.31% -0.27%-0.32%
NZD0.27%0.38%0.53%-0.18%0.57%0.27% -0.12%
CHF0.32%0.47%0.66%-0.11%0.69%0.32%0.12% 

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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