- The GBP/USD pair continues to retreat as the British Pound weakens further against the Dollar.
- US data supports the dollar, while the UK data calendar is sparse and leaves sterling in the wind.
- US and UK GDP will be released in the second half of the week, with US PCE on Friday.
The GBP/USD pair continues to slide below the 1.2160 area during the session on Wednesday, falling to session lows at 1.2110, as selling pressure looks to break the 1.2100 area heading into the second half of the week.
The rebound in the British Pound (GBP) late in the day is causing the pair to pull back slightly to 1.2140, but the strength of the Dollar remains a key factor in the broader markets.
The GDP and the PCE will focus the day from Thursday to Friday
US Durable Goods Orders came in well above expectations on Wednesday, coming in at 0.2% and beating the forecast of -0.5%. US Gross Domestic Product (GDP) figures will be released on Thursday, which markets expect to remain at 2.1%.
GBP/USD will be one of the indicators of most interest among investors during the week, as the UK GDP for the second quarter is expected to remain in line with the previous reading of 0.2%, but the action of the Friday will likely be overshadowed by the US personal consumption expenditure (PCE) price index.
US PCE inflation is expected to remain at 0.2% for the month of August, and the annualized figure is expected to rise from 4.2% to 3.9% for the same period.
GBP/USD Technical Outlook
The GBP/USD pair is firmly anchored in bearish territory, and has lost more than 4% in September alone.
The British Pound is trading at six-month lows against the Dollar, with the next major technical support area being the March low near 1.1800.
Technical indicators are in oversold territory, with the Relative Strength Index (RSI) at 14-day lows since the September 2022 drop to 1.0840.
The 200-day SMA is currently north of 1.2400, and the 34-day EMA has turned sharply lower, and is poised for a bearish crossover of the longer MA .
GBP/USD daily chart
GBP/USD technical levels
|Latest price today||1.2141|
|Daily change today||-0.0018|
|Today’s daily variation||-0.15|
|Today’s daily opening||1.2159|
|Previous daily high||1.2216|
|Previous daily low||1.2153|
|Previous weekly high||1.2425|
|Previous weekly low||1.2231|
|Previous Monthly High||1.2841|
|Previous monthly low||1.2548|
|Daily Fibonacci 38.2||1.2177|
|Fibonacci 61.8% daily||1.2192|
|Daily Pivot Point S1||1.2136|
|Daily Pivot Point S2||1.2113|
|Daily Pivot Point S3||1.2073|
|Daily Pivot Point R1||1.2199|
|Daily Pivot Point R2||1.2238|
|Daily Pivot Point R3||1.2261|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.