GBP/USD Hits Lowest Level Since May
- GBP/USD slumped to its lowest level since May below 1.2600.
- Disappointing UK Retail Sales data weighs on Pound Sterling early Friday.
- Flash estimates for November PMI from the UK and the US will be watched closely.
GBP/USD faced a tough day on Thursday with a 0.5% loss, continuing its downward trend into the Asian session on Friday, touching levels near 1.2550, the lowest since May. Despite being technically oversold, recovery attempts might be short-lived for now.
GBP Price Movement This Week
The table below showcases the percentage change of the British Pound (GBP) against major currencies this week, highlighting the Pound’s weakness against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
Observing the persistent USD strength, GBP/USD faced pressure during the US trading hours due to positive jobless claims data and comments from the Federal Reserve Bank of Chicago President. This scenario contributed to the Dollar’s strength against the Pound.
Early Friday, UK Retail Sales data disappointed with a 0.7% decline in October, exacerbating Pound Sterling’s struggle against major rivals.
Watch out for the upcoming preliminary PMI data releases for November from the UK and the US, as these could influence GBP/USD movement. Positive surprises may provide support, while weaker data could lead to further downside.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator suggests potential for a technical correction in GBP/USD. Key levels to watch are 1.2600, 1.2670, and 1.2700 as resistance, while 1.2550, 1.2500, and 1.2440 serve as support levels.
Pound Sterling FAQs
Here are a few FAQs about the Pound Sterling:
- GBP Overview: The Pound Sterling is the oldest currency, traded globally, and issued by the Bank of England.
- Monetary Policy Influence: BoE decisions on interest rates significantly impact GBP value.
- Economic Data Impact: Releases like GDP and PMIs can sway GBP direction based on economic health.
- Trade Balance Significance: Positive trade balances benefit GBP by increasing demand for exports.
Understanding these aspects can provide insights into the factors affecting Pound Sterling’s value and its performance in the financial markets.