GBP/USD Reaches 1.2650 Area in European Session
- GBP/USD recovers to the 1.2650 area in the European session on Monday.
- The technical picture is yet to point to a buildup of bullish momentum.
- UK and US PMI data will be watched closely by market participants.
After a bearish end to the previous week, GBP/USD gains traction and rises to the 1.2650 area in the European morning on Monday. Preliminary December Manufacturing and Services PMI data from the UK and the US will be closely monitored by market participants.
British Pound PRICE Last 7 Days
The table below shows the percentage change of the British Pound (GBP) against listed major currencies over the last 7 days. The British Pound was weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.47% | 0.74% | 2.55% | 0.50% | 0.26% | 0.99% | 1.36% |
The disappointing monthly Gross Domestic Product (GDP), Industrial, and Manufacturing Production data from the UK caused Pound Sterling to face renewed selling pressure on Friday. However, the improving risk sentiment on Monday is helping GBP/USD edge higher.
GBP/USD Technical Analysis
GBP/USD rose above 1.2620, where the Fibonacci 23.6% retracement of the latest downtrend is located. The Relative Strength Index (RSI) indicator on the 4-hour chart is yet to recover above 50, indicating buyer hesitancy.
On the upside, key resistance levels include 1.2680, 1.2700, and 1.2740, while 1.2600 and 1.2530 may act as support levels in case of a retreat.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency globally (886 AD) and the official currency of the United Kingdom. It is the fourth most traded foreign exchange (FX) unit in the world, accounting for 12% of all transactions. Key trading pairs include GBP/USD, GBP/JPY, and EUR/GBP. The Bank of England (BoE) issues the Pound Sterling.
Monetary policy decisions by the Bank of England significantly influence the value of the Pound Sterling. Adjustments in interest rates play a crucial role in maintaining price stability and affecting GBP value. Economic indicators like GDP, PMIs, and employment data also impact the direction of the Pound Sterling.
Trade Balance data is another essential release for the Pound Sterling, measuring the difference between exports and imports. A positive balance strengthens the currency, reflecting strong demand for exports.