The Latest on GBP/USD Trading
GBP/USD continues to trade in a narrow channel below the key psychological level of 1.3000 on Thursday, showcasing a bearish stance that has persisted in the near term. As investors closely monitor the market, the focus shifts towards upcoming mid-tier macroeconomic data releases from the US.
US Economic Calendar Highlights
- Initial Jobless Claims data
- Retail Sales data
British Pound Price This Week
The table below displays the percentage change of the British Pound (GBP) against major currencies for the current week, highlighting the Pound’s weakness against the US Dollar.
| USD | EUR | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|
| GBP | 0.70% | -0.18% | -0.23% | -0.58% | -0.51% | -0.24% | -0.24% |
Source: FXStreet
Market Analysis
Wednesday’s softer-than-expected UK inflation data led to speculation of potential Bank of England (BoE) rate cuts, resulting in a selloff of the Pound Sterling. The cautious market sentiment on Thursday has bolstered the US Dollar against other currencies, hindering GBP/USD’s recovery.
Later today, market participants will closely watch the US Retail Sales and Initial Jobless Claims data. A significant deviation in the Initial Jobless Claims figure from the expected 258,000 could impact the USD’s strength and influence GBP/USD’s direction.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart indicates a bearish stance with support levels at 1.2950-1.2940 and 1.2900. For a potential reversal, GBP/USD needs to surpass the 1.3000 level and stabilize, with resistance levels at 1.3050 and 1.3100.
Pound Sterling FAQs
Curious about the Pound Sterling? Here are some frequently asked questions:
What Influences the Value of the Pound Sterling?
The value of the Pound Sterling is primarily influenced by the Bank of England’s monetary policy decisions, which focus on maintaining price stability through interest rate adjustments. Economic indicators like GDP, PMIs, and employment data also impact the GBP, along with the Trade Balance, which measures a country’s exports and imports.
Stay informed and make informed investment decisions with a comprehensive understanding of the market trends and factors affecting currency movements.