- GBP/USD is struggling to maintain its uptrend above the yearly high of 1.3266.
- The overbought RSI opened the door for a pullback in GBP/USD.
- The uptrend will resume once the pair reclaims 1.3266.
- Downside risks emerge if GBP/USD falls below 1.3200.
The British Pound is pulling back from multi-year highs it hit on Tuesday and is posting losses of over 0.40% against the US Dollar as traders prepare for the release of US inflation data on Friday. GBP/USD enjoyed a rally and hit a two-year peak of 1.3266 following Fed Chair Jerome Powell’s speech, but at the time of writing, the pair is trading at 1.3220.
GBP/USD Price Forecast: Technical Outlook
According to the GBP/USD daily chart, the uptrend is likely to extend as long as the pair holds above the upper trendline of an ascending channel that was broken on August 23. However, due to the 400-pip rally in August, the pair is ready to consolidate as the buying momentum starts to fade, as shown by the Relative Strength Index (RSI).
The RSI has turned overbought, which means that the pair could pull back before targeting higher prices.
If GBP/USD breaks above the yearly high of 1.3266, that could pave the way for a challenge to 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 a challenge to the March 1, 2022 high at 1.3437.
Conversely, if GBP/USD falls below 1.3200, this could exacerbate a pullback towards the latest cycle high at 1.3044, reached on July 17. A break of the latter will expose the 50-day moving average (DMA) at 1.2857.
GBP/USD Price Action – Daily Chart
Pound Sterling PRICE Today
The table below shows the exchange rate of the British Pound (GBP) against major currencies today. The British Pound was the strongest currency 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 heatmap shows percentage changes of 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 chart will represent the 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.
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