The Latest on GBP/USD Trading
- GBP/USD trades near 1.2750 following Monday’s choppy action.
- The near-term technical outlook points to a lack of bullish momentum.
- In the absence of high-impact data releases, risk mood could drive the pair’s action.
GBP/USD saw a rise to 1.2800 on Monday but faced resistance for the second consecutive day, leading to a consolidation phase around 1.2750 early on Tuesday.
British Pound Price Performance in the Last 7 days
The table below displays the percentage change of the British Pound (GBP) against major currencies over the past 7 days. Notably, the Pound showed strength against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.45% | -0.74% | 1.33% | 0.98% | 1.30% | 1.05% | -0.78% |
The heat map illustrates percentage changes of major currencies against each other. The base currency is shown on the left column, while the quote currency is displayed on the top row.
The negative shift in risk sentiment supported the US Dollar (USD) on Monday, causing GBP/USD to lose its daily gains. Wall Street’s main indexes started the week on a bearish note, with early Tuesday’s US stock index futures trading mixed.
The US Bureau of Labor Statistics (BLS) is set to release a revision to the third-quarter Unit Labor Costs in the early American session on Tuesday. A positive revision could strengthen the USD and weigh on GBP/USD, while a negative revision may have the opposite effect.
Investors may await Wednesday’s November Consumer Price Index (CPI) data from the US before making significant moves. Until then, the USD’s valuation could be influenced by risk perception, with a potential impact on GBP/USD.
GBP/USD Technical Analysis
If GBP/USD faces resistance at 1.2750 and falls below, support levels at 1.2700 and 1.2660 could be tested. On the other hand, if 1.2750 holds as support, the 200-period Simple Moving Average (SMA) at 1.2770 and 1.2800 could act as resistance levels.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency globally and the official currency of the United Kingdom. It is heavily traded in the foreign exchange market, with key pairs like GBP/USD, GBP/JPY, and EUR/GBP. The Bank of England controls the value of GBP through monetary policy decisions and economic indicators such as GDP and employment data.
Key factors influencing the Pound Sterling include interest rates set by the Bank of England, economic data releases, and the Trade Balance indicator. These factors impact GBP’s value in the global market.