GBP/USD Analysis: Potential for Further Losses
- GBP/USD hits resistance at 1.3340 and forms a potential ‘shooting star’ candlestick, signaling possible further losses.
- Key support lies at 1.3250, with additional levels at 1.3239, 1.3200, and the July 14 peak at 1.3142.
- On the upside, GBP/USD must reclaim 1.3300 to retest the YTD high of 1.3340, with further resistance at 1.3437.
The Pound Sterling saw a slight gain against the US Dollar following an optimistic retail sales report in the UK, reaching a high of 1.3340 before settling at 1.3282, showing a 0.03% increase.
Technical Outlook for GBP/USD
GBP/USD encountered strong resistance near 1.3350 and is now potentially forming a ‘shooting star’ candlestick pattern, suggesting a likelihood of further declines.
While the Relative Strength Index (RSI) indicates bullish momentum, a negative divergence hints at a possible pullback in the pair’s value.
Support and Resistance Levels:
- If GBP/USD drops below 1.3250, expect further downside with key levels at 1.3239, 1.3200, and the July 14 peak at 1.3142.
- On the upside, a reclaim of 1.3300 could lead to a retest of the YTD high at 1.3340, followed by resistance at 1.3437.
GBP/USD Price Action on Daily Chart
British Pound Price Today
The table below displays the percentage change of the British Pound (GBP) against major currencies today. Notably, the GBP showed strength against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.10% | 1.21% | 0.19% | 0.45% | 0.40% | 0.39% |
The heat map illustrates percentage changes of major currencies against each other. The base currency is on the left column, while the quote currency is on the top row. For instance, the percentage change between GBP (base) and USD (quote) can be found at the intersection of their respective rows.
Analysis Summary
In summary, the GBP/USD pair faces resistance at 1.3340 with potential for further losses if support levels are breached. Key levels to watch are 1.3250, 1.3239, and 1.3200 on the downside, while a break above 1.3300 could lead to a retest of the YTD high at 1.3340. Traders should monitor these levels closely for potential trading opportunities.