GBP/USD Price Forecast: Consolidates around 1.3000 due to weak USD

  • GBP/USD rises above 1.3000 as investors eye UK budget and potential Fed rate cuts following positive US jobs data.
  • Buyers hold support at the 100-day SMA (1.2971), with a close above 1.3000 targeting resistance at 1.3100 and the 50-day SMA at 1.3139.
  • A close below 1.2971 could open the door for sellers to test 1.2900, with further downside risk towards the 200-day SMA at 1.2804.

The British pound surpassed 1.3000 for the first time in five days after a US jobs report increased the chances of the Federal Reserve (Fed) cutting rates in the last two meetings of 2024. GBP/USD trades at 1.2998, recording gains of over 0.21%.

GBP/USD Price Forecast: Technical Outlook

GBP/USD has been within the 1.2900/1.3000 range, failing to break the bottom/ceiling of the area. Investors remain reluctant to position as they watch the release of the UK budget, seen by traders as the next catalyst, ahead of policy decisions from the Bank of England and the Federal Reserve next week.

In the short term, the pair is tilted lower, but buyers are leaning towards the 100-day SMA at 1.2971, keeping sellers at bay. If the former push GBP/USD above 1.3000 and achieve a daily close above the latter, further upside is seen, and 1.3100 would be the next key resistance level. Once breached, the 50-day SMA at 1.3139 emerges as the next supply zone.

Conversely, if sellers drive the rate below the 100-day SMA at 1.2971, it could exacerbate a test of 1.2900. The bears could push prices to the 200-day SMA at 1.2804 in case of further weakness.

GBP/USD Price Chart – Daily

Pound Sterling PRICE Today

The table below shows the percentage change of the British Pound (GBP) against major currencies today. Pound sterling was the strongest currency against the Australian dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.19% -0.13% 0.14% 0.09% 0.42% 0.31% 0.35%
EUR -0.19% -0.32% -0.05% -0.06% 0.23% 0.13% 0.20%
GBP 0.13% 0.32% 0.28% 0.23% 0.55% 0.44% 0.52%
JPY -0.14% 0.05% -0.28% -0.03% 0.29% 0.17% 0.26%
CAD -0.09% 0.06% -0.23% 0.03% 0.32% 0.21% 0.29%
AUD -0.42% -0.23% -0.55% -0.29% -0.32% -0.11% -0.05%
NZD -0.31% -0.13% -0.44% -0.17% -0.21% 0.11% 0.06%
CHF -0.35% -0.20% -0.52% -0.26% -0.29% 0.05% -0.06%

The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected 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 the GBP (base)/USD (quote).

Source: Fx Street

You may also like