The GBP/USD pair has seen a decline over the past two days, breaking below the key level of 1.3200 as bearish sentiment takes hold. Despite a lack of UK economic data, positive US economic indicators have strengthened the Greenback, leading to the current exchange rate of 1.3151, down by 0.30%.
Technical Outlook for GBP/USD
Looking at the daily chart, the GBP/USD pair is poised to test the previous cycle high of 1.3043 in the short term. Momentum has shifted in favor of sellers, with the Relative Strength Index (RSI) moving out of overbought territory. To continue the downward trend, sellers will need to break through the 1.3100 and 1.3050 support levels. If successful, the pair could target 1.3043, followed by the March 8 high at 1.2893.
On the other hand, buyers aiming for a reversal must surpass the 1.3200 level. This move would open up the possibility of reaching the two-year high at 1.3266, with further targets at 1.3293 and 1.3437.
GBP/USD Price Action – Daily Chart
British Pound PRICE Today
The table below displays the percentage changes of the British Pound (GBP) against major currencies today, highlighting its strength against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.44% | 0.25% | 0.54% | -0.02% | -0.13% | -0.21% | 0.75% | |
| EUR | -0.44% | -0.19% | 0.11% | -0.48% | -0.58% | -0.65% | 0.31% | |
| GBP | -0.25% | 0.19% | 0.31% | -0.28% | -0.39% | -0.46% | 0.53% |
The heat map illustrates the percentage changes of major currencies against each other. The base currency is selected from the left column, while the quote currency is chosen from the top row, providing a clear comparison of currency movements.
Analysis and Conclusion
The GBP/USD pair is currently experiencing a bearish trend, with sellers looking to target the high of 1.3043. This downward momentum is driven by positive US economic data and a shift in RSI levels favoring sellers. To continue the bearish trend, sellers must break through key support levels at 1.3100 and 1.3050. On the other hand, buyers seeking a reversal need to surpass the 1.3200 level to target higher resistance levels at 1.3266, 1.3293, and 1.3437.
Overall, understanding the technical analysis of the GBP/USD pair can provide valuable insights for traders and investors looking to make informed decisions in the foreign exchange market, potentially impacting their financial portfolios and investment strategies.