The Pound Sterling has seen a resurgence, breaking above the key level of 1.2700 as risk appetite in the market improves. This positive movement comes after a Bank of Japan official reassured investors that rates would not be raised amidst current market instability. Currently, the GBP/USD is trading at 1.2720, bouncing back from a low of 1.2680.
Technical Analysis: Neutral to Bearish Outlook
From a technical standpoint, the GBP/USD is showing a neutral to bearish bias after dropping below the 50-day moving average (DMA) at 1.2785. Sellers have been putting pressure on the currency pair, with a breach of the 1.2700 level potentially leading to a test of the August 6th low at 1.2672. Further downside could be seen if the pair falls below the 200-DMA at 1.2651.
On the flip side, if buyers manage to keep the GBP/USD above 1.2700 and push it towards the 50-DMA, we could see a move towards the 1.2800 mark.
GBP/USD Price Action – Daily Chart
British Pound Price Today
The table below illustrates the percentage change of the British Pound (GBP) against major currencies today. The Pound showed strength against the Japanese Yen, indicating a positive outlook for the currency.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.25% | 2.21% | -0.45% | -0.62% | -1.21% | 1.68% | |
| EUR | 0.02% | -0.24% | 2.24% | -0.44% | -0.63% | -1.18% | 1.72% | |
| GBP | 0.25% | 0.24% | 2.46% | -0.20% | -0.40% | -0.90% | 1.95% | |
| JPY | -2.21% | -2.24% | -2.46% | -2.59% | -2.79% | -3.31% | -0.52% | |
| CAD | 0.45% | 0.44% | 0.20% | 2.59% | -0.18% | -0.72% | 2.15% | |
| AUD | 0.62% | 0.63% | 0.40% | 2.79% | 0.18% | -0.50% | 2.36% | |
| NZD | 1.21% | 1.18% | 0.90% | 3.31% | 0.72% | 0.50% | 2.87% | |
| CHF | -1.68% | -1.72% | -1.95% | 0.52% | -2.15% | -2.36% | -2.87% |
Analysis and Conclusion
The recent increase in the GBP/USD above 1.2700 indicates a positive shift in risk sentiment, driven by comments from the Bank of Japan. From a technical perspective, the currency pair is currently in a neutral to bearish position, with key support levels at 1.2672 and 1.2651. Investors should keep an eye on the 1.2700 level, as a sustained move above this could lead to further gains towards 1.2800.