GBP/USD made significant gains last week, with a 2% increase driven by a strong sell-off of the US Dollar (USD). The pair reached a high of 1.3230, its highest level since March 2020, before entering a consolidation phase below the 1.3200 mark.
British Pound Price Last 7 Days
The table below displays the percentage change of the British Pound (GBP) against major currencies over the past 7 days. The GBP showed strength against the US Dollar, gaining 1.90%.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.40% | -1.90% | -2.53% | -1.30% | -1.55% | -2.60% | -2.21% | |
| EUR | 1.40% | -0.60% | -1.09% | 0.10% | -0.25% | -1.38% | -0.86% | |
| GBP | 1.90% | 0.60% | -0.66% | 0.67% | 0.34% | -0.73% | -0.27% | |
| JPY | 2.53% | 1.09% | 0.66% | 1.20% | 0.97% | 0.05% | 0.19% | |
| CAD | 1.30% | -0.10% | -0.67% | -1.20% | -0.29% | -1.23% | -0.97% | |
| AUD | 1.55% | 0.25% | -0.34% | -0.97% | 0.29% | -0.98% | -0.61% | |
| NZD | 2.60% | 1.38% | 0.73% | -0.05% | 1.23% | 0.98% | 0.41% | |
| CHF | 2.21% | 0.86% | 0.27% | -0.19% | 0.97% | 0.61% | -0.41% |
On Friday, Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium led to a decline in the USD Index. Powell emphasized the importance of supporting a strong labor market and hinted at upcoming adjustments to monetary policy.
The upcoming US Durable Goods Orders data for July is expected to show a 4% increase, following a 6.7% contraction in June. While this data may not directly impact the Fed’s policy, a significant deviation from expectations could lead to short-term market reactions. A negative outcome might weaken the USD, while a strong reading could support the USD and potentially lead to a correction in GBP/USD.
GBP/USD Technical Analysis
After breaching the upper limit of the ascending channel, GBP/USD is undergoing a technical correction. The Relative Strength Index (RSI) suggests further downside potential, with key support levels at 1.3170, 1.3120, and 1.3100. Resistance levels include 1.3200, 1.3230, and 1.3270.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency globally, dating back to 886 AD. It is the official currency of the United Kingdom and accounts for a significant portion of global foreign exchange transactions. The value of GBP is influenced by the Bank of England’s monetary policy decisions, economic data releases, and trade balance indicators.
Analysis: The GBP/USD currency pair experienced significant gains last week due to a weakening USD following Powell’s remarks. Investors should monitor upcoming economic data releases, such as Durable Goods Orders, for potential market impact. Technical analysis suggests possible downside correction for GBP/USD, with key support and resistance levels identified. Understanding the factors influencing the Pound Sterling’s value is essential for traders and investors looking to navigate the forex market effectively.