- The GBP/USD pair fell as UK inflation spiked, raising expectations that the Bank of England would become less accommodative.
- Technical analysis indicates bearish momentum as the pair is currently targeting further support levels including the May low at 1.2445.
- The RSI is trending towards oversold territory, suggesting continued downward pressure in the short term.
Sterling weakened against the US dollar on Wednesday after a positive UK inflation report, raising the possibility that the Bank of England (BoE) will halt its easing cycle. GBP/USD is trading at 1.2643, down 0.30% after hitting a high of 1.2714.
GBP/USD Price Prediction: Technical Outlook
After breaking below the 200-day simple moving average (SMA), GBP/USD turned bearish, making a series of highs and lows before clearing the intermediate support at the August 8 daily low of 1.2664. If sellers push the exchange rate below 1.2600, the decline will worsen ahead of the year-to-date low of 1.2299 and towards the May 9 swing low of 1.2445.
Conversely, if GBP/USD rises above 1.2700, it could pave the way for a challenge to the 200-day SMA at 1.2818. Once this is cleared, the next stop will be resistance at 1.2833, the November 6 low, above 1.2850 and 1.2900.
Oscillators such as the Relative Strength Index (RSI) suggest that sellers remain in control. GBP/USD could extend losses as the RSI remains below the neutral line and aiming for an oversold situation.
GBP/USD Price Chart – Daily
British pound PRICE today
The table below shows the percentage change of the British Pound (GBP) against major currencies today. The British pound was the strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.61% | 0.18% | 0.31% | 0.35% | 0.66% | 0.72% | 0.18% | |
| EUR | -0.61% | -0.43% | -0.31% | -0.27% | 0.03% | 0.09% | -0.43% | |
| GBP | -0.18% | 0.43% | 0.10% | 0.16% | 0.46% | 0.52% | -0.01% | |
| JPY | -0.31% | 0.31% | -0.10% | 0.05% | 0.35% | 0.40% | -0.12% | |
| CAD | -0.35% | 0.27% | -0.16% | -0.05% | 0.31% | 0.37% | -0.16% | |
| australian dollar | -0.66% | -0.03% | -0.46% | -0.35% | -0.31% | 0.06% | -0.46% | |
| new zealand dollar | -0.72% | -0.09% | -0.52% | -0.40% | -0.37% | -0.06% | -0.53% | |
| swiss franc | -0.18% | 0.43% | 0.00% | 0.12% | 0.16% | 0.46% | 0.53% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select British Pounds from the left column and move along the horizontal line to US Dollars, the percentage change displayed in the box represents GBP (Basic)/USD (Quote).
