- GBP/USD clings to modest gains near 1.2750 early Tuesday.
- Pound Sterling could come under technical selling pressure if 1.2700 support fails.
- Investors will have several key data releases from the US to assess later this week.
GBP/USD touched its highest level in five months above 1.2800 in the previous week but erased its gains ahead of the New Year holiday to close the week virtually unchanged. Early Tuesday, the pair trades modestly higher on the day at around 1.2750 as trading conditions are yet to normalize.
GBP/USD rose nearly 1% in December. Although the US Dollar (USD) weakened against its major rivals, it managed to limit its losses against Pound Sterling. Softer-than-forecast inflation data from the UK and concerning growth figures caused investors to second-guess the timing of the Bank of England's (BoE) policy pivot in 2024.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the strongest against the Swiss Franc.
USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
USD | 0.08% | -0.06% | 0.05% | -0.19% | 0.26% | 0.19% | 0.43% | |
EUR | -0.07% | -0.13% | -0.02% | -0.26% | 0.18% | 0.12% | 0.36% | |
GBP | 0.05% | 0.13% | 0.10% | -0.17% | 0.32% | 0.22% | 0.46% | |
CAD | -0.05% | 0.02% | -0.11% | -0.23% | 0.21% | 0.14% | 0.39% | |
AUD | 0.18% | 0.26% | 0.12% | 0.23% | 0.44% | 0.37% | 0.62% | |
JPY | -0.26% | -0.17% | -0.32% | -0.20% | -0.44% | -0.06% | 0.19% | |
NZD | -0.16% | -0.08% | -0.22% | -0.13% | -0.37% | 0.11% | 0.21% | |
CHF | -0.44% | -0.34% | -0.47% | -0.36% | -0.63% | -0.15% | -0.22% |
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Meanwhile, the CME Group FedWatch Tool shows that markets are pricing in a nearly 85% probability that the Federal Reserve (Fed) will lower the policy rate by 25 basis points in March.
There won't be any high-tier data releases in Tuesday's economic calendar, other than revisions to S&P Global Manufacturing PMI figures for the UK and the US.
In the second half of the week, ISM PMI surveys from the US and December jobs report will be watched closely by market participants.
GBP/USD Technical Analysis
The 50-period Simple Moving Average (SMA) on the 4-hour chart acts as dynamic support at around 1.2720. If GBP/USD falls below that level, 1.2700 (psychological level, static level) aligns as next key support level. A 4-hour close below this support could attract technical sellers and open the door for an extended downward correction toward 1.2650 (Fibonacci 23.6% retracement of the latest uptrend).
On the upside, interim resistance is located at 1.2750 (20-period SMA, static level) before 1.2800 (psychological level, static level) and 1.2830 (December 28 high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision
GBP/USD builds its recovery momentum above 1.2900 in European trading on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements.
EUR/USD stays firm near 1.0750 amid US Dollar pullback
EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements.
Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision
Gold price (XAU/USD) faced challenges as the dollar-denominated precious metals struggled due to a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.
BoE set for a second interest rate cut this year on Thursday
Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.