- GBP/USD is likely to fall to lows not seen in over two weeks as bearish momentum develops.
- The US Dollar index has risen above 97.50, bolstered by Powell’s cautious remarks, giving the dollar some support.
- Key support is at 1.3400, with September’s swing low at 1.3333; a break could push it lower.
On Wednesday, the British pound (GBP) is slipping against the US dollar (USD), ending a mild two-day upswing. This shift appears to be driven by stronger comments from Bank of England (BOE) Governor Andrew Bailey, which favor the greenback.
Currently, GBP/USD is trading around 1.3435 and is set to hit its lowest point in over two weeks by September 5. The downward trend is gaining momentum, with the pair falling nearly 0.65% in a single day, unable to maintain any recovery above the 21-day simple moving average (SMA).
In the meantime, the US Dollar Index (DXY), which measures the dollar’s value against a selection of six key currencies, has rebounded sharply to 97.70 after two days of losses.
Looking at daily charts, GBP/USD reached its highest point since early September 17, then continued to slide as bearish sentiment strengthened. Technically, the pair is falling below both the 21-day and 50-day SMAs, which sit at 1.3521 and 1.3470, respectively.
Immediate support is identified at 1.3400. If that level is broken, the next target would be September’s swing low at 1.3333. For the bulls, a recovery above the 21-day SMA is necessary to lessen selling pressure, with the next resistance around 1.3600.
The momentum indicators are tilting negative. The relative strength index (RSI) hovers around 44, indicating that sellers still dominate the market, perhaps leaving some room for additional declines.
Meanwhile, the moving average convergence divergence (MACD) indicates a bearish crossover as the MACD line dips below the signal line, with the red histogram bar expanding. This is a pretty clear sign of bearish momentum that could suggest deeper losses ahead. The technical outlook remains bearish unless buyers manage to push prices back above the 50-day SMA by the end of the day.
Today’s Sterling Price
The table below reflects the changes in the British pound (GBP) today against major currencies. The pound appears to be the strongest versus the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.66% | 0.68% | 0.74% | 0.31% | 0.01% | 0.58% | 0.42% | |
| EUR | -0.66% | 0.00% | 0.10% | -0.36% | -0.65% | -0.08% | -0.23% | |
| GBP | -0.68% | -0.01% | 0.06% | -0.36% | -0.60% | -0.10% | -0.29% | |
| JPY | -0.74% | -0.10% | -0.06% | -0.44% | -0.72% | -0.25% | -0.34% | |
| CAD | -0.31% | 0.36% | 0.36% | 0.44% | -0.26% | 0.25% | 0.12% | |
| AUD | -0.01% | 0.65% | 0.60% | 0.72% | 0.26% | 0.57% | 0.42% | |
| NZD | -0.58% | 0.08% | 0.10% | 0.25% | -0.25% | -0.57% | -0.12% | |
| CHF | -0.42% | 0.23% | 0.29% | 0.34% | -0.12% | -0.42% | 0.12% |
This heatmap shows the percentage changes for the major currencies compared to one another. The base currency is selected from the left column and the quoting currency from the top row. For instance, if you look at the British pound against the US dollar, the rate shown corresponds to GBP/USD.
