The British Pound (GBP) weakened against the US Dollar (USD) on Wednesday, reaching a new weekly low as US Treasury bond yields continued to rise. Investors were influenced by Federal Reserve officials’ cautious approach, leading to expectations of only a 25 basis point rate cut by the end of 2024. The GBP/USD pair traded at 1.2719, a decrease of 0.33% from the previous session.
Technically, the GBP/USD formed an ‘evening star’ chart pattern, suggesting a potential further decline in prices. Despite remaining bullish, the Relative Strength Index (RSI) showed weakening momentum as it aimed toward the 50-midline. If the pair drops below 1.2700, it could test support levels at 1.2634 and potentially the 50-day and 200-day moving averages.
On the other hand, if buyers manage to reclaim the recent high of 1.2777, the pair could see further upside above 1.2800, targeting the year-to-date high of 1.2893. The daily chart indicates a potential shift in momentum, with the direction likely to be determined by key support and resistance levels.
Today, the British Pound showed strength against the Australian Dollar compared to other major currencies. The percentage changes in the GBP’s value against USD, EUR, JPY, CAD, AUD, NZD, and CHF are also displayed in a table format for quick reference. The heat map provides a visual representation of the percentage changes between major currencies, helping traders assess relative strength and weakness in the forex market.
Overall, the GBP/USD pair’s price action reflects the ongoing tug-of-war between bullish and bearish forces. Traders should keep a close eye on key technical levels and market developments to determine the next direction in the currency pair. A break below 1.2700 could lead to further losses, while a move above 1.2800 may signal a potential rally towards higher resistance levels. Stay updated on market news and analysis to make informed trading decisions amidst evolving market conditions.
