GBP/USD Update
- GBP/USD might find initial support at 1.3365, reaching a two-month low.
- The 14-day relative strength index has dipped below 50, which strengthens the bearish outlook.
- Key resistance seems to be around the 1.3460 area, near the 9-day EMA.
The GBP/USD pair is trading near 1.3420 during Asian trading hours on Monday, showing a slight upward movement for the second consecutive time. Yet, the overall bearish sentiment remains evident in the daily chart analysis, which indicates the pair is still following a descending channel pattern.
The 14-day relative strength index (RSI) has now slipped below 50, further reinforcing the bearish sentiment. Additionally, the GBP/USD pair sits below the nine-day exponential moving average (EMA), hinting at a lack of short-term momentum.
On the downside, the pair is eyeing key support at a two-month low of 1.3365. If it breaks this level, the next focus could shift to the lower boundary of the downward channel, particularly around the psychological barrier of 1.3300, which may exert additional downward pressure on the pair.
Conversely, the GBP/USD pair may face immediate resistance around the upper boundary of the descending channel, which coincides with the 9-day EMA at 1.3460, followed by a 50-day EMA at 1.3465. A decisive break above this critical zone could potentially improve both short- and medium-term price momentum, supporting the pair’s advance towards around 1.3788, its highest level since October 2021 that was recorded on July 1.
GBP/USD: Daily Charts
The current table outlines how the British pound (GBP) is performing against several major currencies today, revealing that GBP is notably stronger against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.03% | 0.21% | 0.02% | 0.06% | 0.25% | -0.02% | |
| EUR | 0.01% | 0.06% | 0.22% | 0.00% | 0.04% | 0.09% | -0.05% | |
| GBP | 0.03% | -0.06% | -0.04% | -0.00% | 0.00% | 0.25% | 0.09% | |
| JPY | -0.21% | -0.22% | 0.04% | -0.18% | -0.11% | -0.00% | -0.06% | |
| CAD | -0.02% | -0.01% | 0.00% | 0.18% | 0.11% | 0.25% | -0.08% | |
| AUD | -0.06% | -0.04% | -0.01% | 0.11% | -0.11% | 0.13% | 0.05% | |
| NZD | -0.25% | -0.09% | -0.25% | 0.00% | -0.25% | -0.13% | -0.16% | |
| CHF | 0.02% | 0.05% | -0.09% | 0.06% | 0.08% | -0.05% | 0.16% |
The heatmap demonstrates the rate of change for each major currency, using the left column to select the base currency and the top row for the estimated currency. So, for instance, if you choose the British pound and look across to the US dollar, the rate of change you see in that box reflects GBP (base) against USD (quote).
