- GBP/USD retreated toward 1.2600 in the early European session on Tuesday.
- Important support area seems to have formed at 1.2550-1.2560.
- The pair could struggle to rebound unless risk mood improves.
GBP/USD continued to edge lower toward 1.2600 early Tuesday after closing the first trading day of the week deep in negative territory. While investors await important macroeconomic data releases from the US, the pair's technical outlook points to a bearish tilt in the short term.
The US Dollar (USD) capitalized on safe haven flows on Monday and caused GBP/USD to stretch lower in the American trading hours. Meanwhile, the steady recovery seen in the US Treasury bond yields following the previous week's sharp slide provided an additional boost to the currency.
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 weakest against the US Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.64% | 0.71% | 0.56% | 1.61% | 0.34% | 1.06% | 0.60% | |
| EUR | -0.66% | 0.08% | -0.08% | 0.99% | -0.31% | 0.44% | -0.04% | |
| GBP | -0.74% | -0.08% | -0.16% | 0.90% | -0.37% | 0.36% | -0.14% | |
| CAD | -0.56% | 0.08% | 0.16% | 1.07% | -0.23% | 0.53% | 0.02% | |
| AUD | -1.64% | -1.00% | -0.92% | -1.08% | -1.31% | -0.55% | -1.04% | |
| JPY | -0.38% | 0.31% | 0.53% | 0.23% | 1.29% | 0.74% | 0.25% | |
| NZD | -1.07% | -0.43% | -0.35% | -0.51% | 0.56% | -0.72% | -0.47% | |
| CHF | -0.60% | 0.04% | 0.12% | -0.02% | 1.02% | -0.24% | 0.47% |
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).
Early Tuesday, the market mood remains cautious amid elevated geopolitical tensions in the Middle East. At the time of writing, the UK's FTSE 100 Index was down 0.2% and US stock index futures were losing between 0.2% and 0.3%.
October JOLTS Job Openings data and the ISM's Services PMI survey for November will be looked upon for fresh impetus in the American session. A noticeable decline to below 9 million in job openings could weigh on the USD and help GBP/USD erase some of its recent losses. On the other hand, a better-than-expected ISM Services PMI print could allow the USD to hold its ground.
GBP/USD Technical Analysis
GBP/USD closed the last 4-hour candle below the 20-period and the 50-period Simple Moving Averages (SMA). In the meantime, the Relative Strength Index (RSI) indicator on the same chart retreated slightly below 50, suggesting that buyers are yet to bet on a steady rebound.
On the downside, 1.2600 (psychological level, static level) aligns as first support before 1.2550-1.2560 (Fibonacci 23.6% retracement of the latest uptrend, 100-period SMA) and 1.2500 (psychological level, static level).
In case GBP/USD stabilizes above 1.2650 (20-period SMA, 50-period SMA), it could face next resistances at 1.2700 (psychological level, static level) and 1.2740 (static level).
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 shift its attention to 0.6600 and beyond
AUD/USD left behind Friday’s decline and rose past the 0.6500 barrier, meeting resistance once again around the 0.6550 zone on the back of the pronounced sell-off in the US Dollar.
EUR/USD: Initial contention aligns near 1.0330
The sharp decline in the Greenback allowed EUR/USD to regain some composure and reclaim the 1.0500 hurdle at the beginning of the week ahead of key releases on both sides of the ocean.
Gold turns bearish and could test $2,600
After recovering toward $2,700 during the European trading hours, Gold reversed its direction and dropped below $2,650. Despite falling US Treasury bond yields, easing geopolitical tensions don't allow XAU/USD to find a foothold.
MicroStrategy set to push Bitcoin to new highs after 55,500 BTC acquisition, should investors be concerned?
MicroStrategy revealed on Monday that it made another heavy Bitcoin purchase, acquiring 55,500 BTC for $5.4 billion at an average rate of $97,862 per coin.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.