Pound Sterling Price News and Forecast: GBP/USD loses momentum and holds below the mid-1.2000s on Tuesday

FXStreet Team FXStreet

GBP/USD Price Analysis: Remains under pressure below the mid-1.2000s, oversold RSI condition eyed

The GBP/USD pair extends its downside and trades in negative territory for the fifth consecutive week during the early European trading session on Tuesday. The sell-off of the pair is supported by the firmer US Dollar (USD) and the hawkish stance of the Federal Reserve (Fed). GBP/USD currently trades around 1.2066, losing 0.16% on the day.

Technically, GBP/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the one-hour chart, which means further downside looks favorable. Read more...

GBP/USD seems vulnerable below 1.2100, multi-month low on sustained USD buying

The GBP/USD pair is seen oscillating in a narrow trading band below the 1.2100 mark and consolidating its recent losses to the lowest level since March 16 touched during the Asian session this Tuesday. Extremely oversold conditions on the daily chart hold back bearish traders from placing fresh bets, though the fundamental backdrop suggests that the path of least resistance for spot prices is to the downside.

The British Pound (GBP) continues with its relative underperformance in the wake of the Bank of England's (BoE) surprise move to pause its rat-hiking cycle in September. This was the first time since December 2021 that the BoE did not raise interest rates. Adding to this, the UK central bank also lowered its forecast for economic growth in the July-September period to just 0.1% from the previous projection of 0.4% and provided little hints of its intention to raise rates any further. This, along with the underlying strong bullish sentiment surrounding the US Dollar (USD), acts as a headwind for the GBP/USD pair. Read more...

GBP/USD

Overview
Today last price	1.2065
Today Daily Change	-0.0022
Today Daily Change %	-0.18
Today daily open	1.2087

Trends
Daily SMA20	1.2347
Daily SMA50	1.2574
Daily SMA100	1.2619
Daily SMA200	1.2436

Levels
Previous Daily High	1.222
Previous Daily Low	1.2086
Previous Weekly High	1.2272
Previous Weekly Low	1.2111
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2137
Daily Fibonacci 61.8%	1.2169
Daily Pivot Point S1	1.2042
Daily Pivot Point S2	1.1998
Daily Pivot Point S3	1.1909
Daily Pivot Point R1	1.2176
Daily Pivot Point R2	1.2265
Daily Pivot Point R3	1.2309

Author

FXStreet Team

FXStreet

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