- GBP/USD holds steady near 1.2750 after posting modest gains on Monday.
- The near-term technical outlook points to a build-up of bullish momentum.
- The risk perception could drive the pair's action in the absence of high-tier data releases.
After dipping below 1.2700, GBP/USD reversed its direction and closed the first trading day of the week in positive territory near 1.2750. The near-term technical outlook suggests that the pair could continue to edge higher once 1.2750 holds is confirmed as support.
Improving risk mood helped GBP/USD gain traction in the second half of the day on Monday. Growing optimism about the US government avoiding a shutdown after leaders of the House and Senate agreed on a $1.59 trillion spending deal late Sunday allowed US stocks to gather bullish momentum to start the week.
Pound Sterling price this week
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies this week. Pound Sterling was the strongest against the Australian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.05% | -0.15% | 0.02% | 0.15% | -0.59% | -0.04% | -0.17% | |
| EUR | 0.05% | -0.10% | 0.07% | 0.22% | -0.53% | 0.01% | -0.12% | |
| GBP | 0.14% | 0.10% | 0.17% | 0.31% | -0.43% | 0.11% | -0.02% | |
| CAD | -0.01% | -0.06% | -0.16% | 0.15% | -0.58% | -0.06% | -0.18% | |
| AUD | -0.15% | -0.21% | -0.31% | -0.15% | -0.73% | -0.21% | -0.33% | |
| JPY | 0.54% | 0.52% | 0.41% | 0.60% | 0.74% | 0.54% | 0.39% | |
| NZD | 0.04% | -0.01% | -0.11% | 0.06% | 0.20% | -0.54% | -0.14% | |
| CHF | 0.17% | 0.12% | 0.02% | 0.19% | 0.33% | -0.41% | 0.13% |
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, US Treasury bond yields edged lower and the US Dollar (USD) struggled to attract buyers after the Federal Reserve Bank of New York reported that consumers' year-ahead inflation expectation dropped to its lowest level since January 2021 at 3%.
Nevertheless, the CME Group FedWatch Tool shows that the probability of a 25 basis points Federal Reserve rate cut in March stays around 60%, down from nearly 80% early last week. Investors might want to wait to confirm a further decline in core inflation figures before betting on a policy pivot.
The US economic calendar will not offer any macroeconomic data releases that could drive the USD's valuation in a noticeable way. Hence, market participants are likely to remain focused on the risk perception. The UK's FTSE 100 trades flat in the early session and US stock index futures are down between 0.3% and 0.4%.
GBP/USD Technical Analysis
The lower limit of the ascending regression channel forms a pivot level at 1.2750. Once GBP/USD confirms that level as support, it could target 1.2800 (psychological level, static level) and 1.2820 (end-point of the latest uptrend).
If GBP/USD fails to stabilize above 1.2750, buyers could be discouraged. In this scenario, 1.2700 (100-period Simple Moving Average (SMA), psychological level) could be seen as next support before 1.2650 (Fibonacci 23.6% retracement, 200-period SMA).
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
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD: No respite to the sell-off ahead of US CPI
The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
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.