- GBP/USD struggles to keep its uptrend above year-to-date (YTD) high of 1.3266.
- RSI shifting overbought opened the door for GBP/USD’s retracement.
- The uptrend will resume once the pair reclaims 1.3266.
- Downside risks emerge if GBP/USD tumbles below 1.3200.
The Pound Sterling retreats from the multi-year highs it reached on Tuesday and registers losses of over 0.40% against the Greenback as traders brace for the release of US inflation data on Friday. The GBP/USD enjoyed a ride and hit a two-year peak at 1.3266 following Fed Chair Jerome Powell’s speech, yet at the time of writing, the pair trades at 1.3220.
GBP/USD Price Forecast: Technical outlook
According to the GBP/USD daily chart, the uptrend will extend as long as the pair remains above the top trendline of an ascending channel that was broken on August 23. However, due to the 400-pip rally in August, the pair is set to consolidate as buying momentum begins to fade, as depicted by the Relative Strength Index (RSI).
The RSI turned overbought, meaning the pair could retreat before aiming for higher prices.
If GBP/USD clears the YTD high of 1.3266, that could pave the way for challenging the March 23, 2022 peak at 1.3298. Further gains are seen once that level is cleared, with the next key resistance being the 1.3400 figure before challenging the March 1, 2022, high at 1.3437.
Conversely, if GBP/USD tumbles below 1.3200, this could exacerbate a pullback toward the latest cycle high at 1.3044, hit on July 17. A breach of the latter will expose the 50-day moving average (DMA) at 1.2857.
GBP/USD Price Action – Daily Chart
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.54% | 0.40% | 0.42% | 0.12% | 0.07% | -0.11% | 0.13% | |
| EUR | -0.54% | -0.13% | -0.13% | -0.41% | -0.45% | -0.37% | -0.41% | |
| GBP | -0.40% | 0.13% | 0.00% | -0.29% | -0.33% | -0.25% | -0.27% | |
| JPY | -0.42% | 0.13% | 0.00% | -0.27% | -0.34% | -0.27% | -0.28% | |
| CAD | -0.12% | 0.41% | 0.29% | 0.27% | -0.05% | 0.04% | 0.02% | |
| AUD | -0.07% | 0.45% | 0.33% | 0.34% | 0.05% | 0.08% | 0.06% | |
| NZD | 0.11% | 0.37% | 0.25% | 0.27% | -0.04% | -0.08% | -0.02% | |
| CHF | -0.13% | 0.41% | 0.27% | 0.28% | -0.02% | -0.06% | 0.02% |
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 British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
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
EUR/USD struggles to hold above 1.0400 as mood sours
EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower.
GBP/USD approaches 1.2500 on renewed USD strength
GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.
Gold hovers around $2,610 in quiet pre-holiday trading
Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 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.