- GBP/USD might see initial support near the lower edge of the downward channel around 1.3180.
- The 14-day relative strength index has dipped below 50, reinforcing a bearish outlook.
- The first resistance lies at the 9-day EMA at 1.3332.
The GBP/USD pair is likely to trade in a sideways manner after a gain of over 0.5% the previous day, hovering around 1.3280 during Asian trading on Monday. The prevailing sentiment is bearish, as technical analysis on the daily chart indicates that the pair is moving within a downward channel.
This decline is underscored by the 14-day relative strength index (RSI), which is now below 50. This suggests the bearish sentiment could be deepening. Furthermore, the pair’s position below the nine-day EMA indicates a loss of short-term price momentum.
On the downside, support seems to have formed at approximately 1.3180, the lower boundary of the downward channel, which is just above a four-month low of 1.3139 recorded on May 12.
The GBP/USD pair is eyeing an immediate resistance at the 9-day EMA of 1.3332, followed by a 50-day EMA at 1.3432. Should the pair break through these barriers, it could boost both short- and medium-term price momentum, potentially testing the upper limit of the downward channel around 1.3520. Continued gains could push the pair toward 1.3788, its highest point since October 2021, noted on July 1.
GBP/USD: Daily Charts
British pound prices today
The table below illustrates how the British pound (GBP) has changed against major currencies today. Notably, the pound has shown weakness against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.12% | 0.04% | 0.28% | -0.06% | -0.06% | -0.06% | -0.02% | |
| EUR | -0.12% | -0.03% | 0.17% | -0.17% | -0.31% | -0.19% | -0.15% | |
| GBP | -0.04% | 0.03% | 0.24% | -0.14% | -0.28% | -0.16% | -0.11% | |
| JPY | -0.28% | -0.17% | -0.24% | -0.34% | -0.49% | -0.36% | -0.13% | |
| CAD | 0.06% | 0.17% | 0.14% | 0.34% | -0.16% | 0.00% | 0.03% | |
| AUD | 0.06% | 0.31% | 0.28% | 0.49% | 0.16% | 0.13% | 0.16% | |
| NZD | 0.06% | 0.19% | 0.16% | 0.36% | -0.00% | -0.13% | 0.03% | |
| CHF | 0.02% | 0.15% | 0.11% | 0.13% | -0.03% | -0.16% | -0.03% |
The heatmap illustrates how each major currency has changed in value. The base currency is selected from the left column while the target currency is chosen from the top row. For instance, selecting the British pound from the left and then moving to US dollars will display the rate of change represented as GBP (base)/USD (quote).
