- GBP/USD falls to a new three-day low as 'evening star' chart pattern emerges.
- The buyers' momentum begins to fade as the RSI points towards the midline of 50.
- If the pair falls below 1.2700, look for more losses; Otherwise, bulls may challenge 1.2800.
The British pound fell to a new weekly low against the US dollar on Wednesday, as US Treasury yields continued to rise. Federal Reserve officials remained cautious, influencing traders' expectations of just 25 basis points of rate cuts by the end of 2024. The GBP/USD It is trading at 1.2719, down 0.33%.
GBP/USD Price Analysis: Technical Outlook
GBP/USD formed a three-candle chart formation called the 'evening star', suggesting that prices could fall further. Momentum is still bullish, as shown by the RSI, but it is pointing towards the 50 midline, which means buyers are losing momentum.
In case of further weakness, if GBP/USD falls below 1.2700, the pair could test the May 3 daily high turned support at 1.2634. If it turns down from that level, the next support would be the 50-day moving average (DMA) at 1.2580, followed by the 200-day moving average (DMA) at 1.2539.
On the other hand, if buyers reclaim the current week's high of 1.2777, further gains are expected above 1.2800, such as the year-to-date high of 1.2893.
GBP/USD Price Action – Daily Chart
Price of the Pound Sterling Today
The table below shows the percentage change of the British Pound (GBP) against the major currencies listed today. The British Pound was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.33% | 0.33% | 0.13% | 0.34% | 0.40% | 0.27% | 0.05% | |
| EUR | -0.33% | -0.01% | -0.22% | 0.00% | 0.06% | -0.06% | -0.28% | |
| GBP | -0.33% | 0.00% | -0.22% | -0.02% | 0.05% | -0.05% | -0.29% | |
| JPY | -0.13% | 0.22% | 0.22% | 0.20% | 0.27% | 0.15% | -0.10% | |
| CAD | -0.34% | -0.00% | 0.02% | -0.20% | 0.07% | -0.05% | -0.30% | |
| AUD | -0.40% | -0.06% | -0.05% | -0.27% | -0.07% | -0.11% | -0.34% | |
| NZD | -0.27% | 0.06% | 0.05% | -0.15% | 0.05% | 0.11% | -0.25% | |
| CHF | -0.05% | 0.28% | 0.29% | 0.10% | 0.30% | 0.34% | 0.25% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen from the left column, while the quote currency is chosen from the top row. For example, if you choose the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent GBP (base)/USD (quote).
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.
