Pound Plummets: UK Currency Takes a Hit as Bank of England Signals Caution

• Affected by the Bank of England’s dovish remarks and rising U.S. Treasury yields, the pound fell 0.26% against the dollar to 1.3076, having previously hit a high of 1.3134.
• Bearish RSI indicates sellers have the upper hand; key support lies at 50-DMA 1.3077, 1.3031 and 1.3001.
• Resistance is at 1.3100, with other targets at 1.3134 and the October 4 high of 1.3174.

In early North American trading, the pound extended its losses against the dollar, falling 0.26%. Dovish comments from Bank of England (BOE) Governor Andrew Bailey started the pound’s downward path last week. As a result, GBP/USD is trading at 1.3076 after hitting a daily high of 1.3134.

GBP/USD Price Forecast: Technical Outlook

During the overnight session for US traders, GBP/USD hit a three-week low of 1.3058 before recovering. A jump in US Treasury yields supported the dollar, which rose to a 7-week high above 102.00 but failed to break above 103.00.

The Relative Strength Index (RSI) shows signs of sellers taking over after the bearish move. Given this backdrop, the path of least resistance for GBP is tilted to the downside.

The first level of support for GBP/USD is the 50-day moving average (DMA) at 1.3077. In the event of further weakness, the next support would be the September 12 low at 1.3031, followed by the recent swing low at 1.3001, the September 11 low.

On the contrary, if the pair rises above 1.3100, it is expected to retest the day’s high of 1.3134 and then challenge 1.3150. Next will be the October 4 high of 1.3174, then 1.3200.

GBP/USD Price Trend – Daily Chart

British pound price today

The table below shows today’s percentage change in British Pound Sterling (GBP) against the major currencies listed. [貨幣名稱]right[貨幣名稱]The strongest.

-0.03%
0.30%
-0.39%
0.32%
0.42%
0.58%
-0.35%

0.03%
 
0.40%
-0.33%
0.38%
0.42%
0.60%
-0.35%

-0.30%
-0.40%
 
-0.76%
-0.00%
0.02%
0.24%
-0.62%

0.39%
0.33%
0.76%
 
0.70%
0.78%
0.91%
0.07%

-0.32%
-0.38%
0.00%
-0.70%
 
0.11%
0.25%
-0.67%

-0.42%
-0.42%
-0.02%
-0.78%
-0.11%
 
0.23%
-0.73%

-0.58%
-0.60%
-0.24%
-0.91%
-0.25%
-0.23%
 
-0.89%

0.35%
0.35%
0.62%
-0.07%
0.67%
0.73%
0.89%

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF

The heat map shows the percentage change of major currencies relative to other currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select GBP from the left column and move along the horizontal line to USD, the percentage change shown in the box will represent GBP (base) / USD (quote).