- The GBP/USD pair is trading at 1.2166, down slightly after reaching a daily high of 1.2211.
- Escalating tensions between Hamas and Israel, along with escalating rhetoric from Iran, drive risk aversion, weighing on the Pound.
- Despite the rise in UK inflation in September (6.7%), the chances of the Bank of England raising rates in early November remain slim.
The British Pound (GBP) pared some of its earlier losses against the US Dollar (USD), but remained on the defensive, posting modest losses, while the GBP/USD pair trades at 1.2166 after hitting a daily high of 1.2211.
The Pound on the defensive despite British inflation exceeding estimates
Risk aversion is taking its toll on risky currencies like the British pound. Tensions between Hamas and Israel increased following the explosion of a hospital in Gaza, for which the Palestinians blamed the latter. Consequently, Iran escalated its rhetoric even though US President Joe Biden clarified that it was not Israel that was behind the attack.
Despite strong US economic data, including positive retail sales and industrial production figures, recent rhetoric from US Federal Reserve (Fed) officials has remained dovish, even with a inflation that almost doubles the Fed’s target. Data published today in the US present a mixed picture, as housing construction starts in September increased by 7%, exceeding expectations, while construction permits fell -4.4%.
In view of these data, the money market has not valued a rate increase of 25 basis points for November. Instead, the focus appears to be on the January meeting, with a rate hike probability of 51.65%.
Meanwhile, the UK economic agenda revealed that September inflation was higher than expected, reaching 6.7% year-on-year, compared to estimates of 6.6%. Despite this, the chances of the Bank of England (BoE) raising rates in early November remain low, after the BoE left rates unchanged in September.
GBP/USD Price Analysis: Technical Outlook
Technically, the GBP/USD pair has a neutral bearish bias and would accelerate its downtrend if it falls below the latest swing low of 1.2122, with sellers targeting a test of the October swing low of 1.2037. The 1.2000 level would be in play if the pair breaks it. To the upside, buyers must reclaim the October 13 high at 1.2225 to reclaim 1.2300.
GBP/USD
Overview | |
---|---|
Latest price today | 1.2166 |
Today Daily Change | -0.0017 |
Today’s daily variation | -0.14 |
Today’s daily opening | 1.2183 |
Trends | |
---|---|
daily SMA20 | 1.2203 |
daily SMA50 | 1.2442 |
SMA100 daily | 1.2596 |
SMA200 daily | 1.2444 |
Levels | |
---|---|
Previous daily high | 1.2217 |
Previous daily low | 1.2133 |
Previous weekly high | 1.2337 |
Previous weekly low | 1.2123 |
Previous Monthly High | 1.2713 |
Previous monthly low | 1.2111 |
Daily Fibonacci 38.2 | 1.2165 |
Fibonacci 61.8% daily | 1.2185 |
Daily Pivot Point S1 | 1.2138 |
Daily Pivot Point S2 | 1.2094 |
Daily Pivot Point S3 | 1.2054 |
Daily Pivot Point R1 | 1.2222 |
Daily Pivot Point R2 | 1.2262 |
Daily Pivot Point R3 | 1.2307 |
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.