The Current State of GBP/USD Trading
- GBP/USD trades in positive territory above 1.2950 early Thursday.
- Disappointing PMI data from the UK limit Pound Sterling’s upside.
- The pair could extend its recovery in case risk mood improves.
GBP/USD is holding steady and trading slightly higher above 1.2950 in the European morning on Thursday. The potential for Pound Sterling to benefit from an improving risk mood in the second half of the day could lead to further gains for the pair.
British Pound PRICE This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.63% | 0.69% | 1.67% | 0.04% | 0.80% | 0.70% | 0.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
On Wednesday, the US Dollar (USD) maintained its strength, causing GBP/USD to drop to its weakest level since mid-August near 1.2900. The USD benefited from rising US Treasury bond yields and acted as a safe-haven asset, while major US stock indexes declined significantly after the opening bell.
GBP/USD Technical Analysis
GBP/USD is currently trading in the upper half of a descending regression channel, with the Relative Strength Index (RSI) indicator on the 4-hour chart showing a rise towards 50, indicating a loss of bearish momentum in the short term. The 100-day Simple Moving Average (SMA) acts as immediate resistance at 1.2970. If GBP/USD surpasses this level, it could target 1.3000 and 1.3020 as the next resistance levels.
On the downside, initial support lies at 1.2900, followed by 1.2800.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, GBP/JPY, and EUR/GBP. The Pound Sterling is issued by the Bank of England (BoE).
The value of the Pound Sterling is heavily influenced by monetary policy decisions made by the Bank of England. The BoE adjusts interest rates to maintain price stability and achieve its inflation target of around 2%. Economic indicators such as GDP, PMIs, and employment data also impact the value of GBP. Additionally, the Trade Balance indicator measures the difference between a country’s exports and imports, affecting the strength of its currency.