The GBP/USD pair remains in a tight range between 1.3010 and 1.3095, with pressure from the 50-day moving average at 1.3104 and support at 1.3000. Momentum is currently favoring sellers, as indicated by the Relative Strength Index (RSI) being in bearish territory, suggesting a potential move lower towards the 100-day moving average at 1.2945. If the pair breaks above 1.3100, it could face resistance at the October 4 peak of 1.3175, with further gains targeting 1.3200.
The Pound Sterling is starting the week on a negative note due to a lack of significant economic data on Monday. However, trading conditions are thin, and the GBP/USD pair is currently trading at 1.3046, losing 0.09%. The market is waiting for the UK’s employment report on Tuesday to gather traction, which could provide more direction for the pair’s movement in the coming days.
Technically, the GBP/USD pair has been consolidating within the 1.3010-1.3095 range for the third consecutive day, unable to break out of this region. The 50-day moving average at 1.3104 has been acting as a resistance on the upside, while the 1.3000 figure is holding as support on the downside. With momentum indicating that sellers are in control, traders should monitor key UK data releases for potential market-moving events.
If the GBP/USD pair falls below 1.3000, the next support levels to watch are the 100-day moving average at 1.2945 and the 1.2900 figure. Further downside may occur if the pair drops below the 200-DMA at 1.2789. On the other hand, a clear break above 1.3100 could lead to a test of the 50-DMA at 1.3104. A breach of this level might open the door for a move towards the October 4 peak at 1.3175, followed by a potential challenge of 1.3200.
In terms of the daily chart, the GBP/USD price action is reflecting the consolidative phase within the tight range highlighted earlier. The struggle to break out of this range suggests that traders are awaiting a catalyst, such as key economic data, to provide a clear direction for the pair. With the UK’s employment report on the horizon, market participants will be closely watching for any surprises that could impact the Pound Sterling’s performance.
The table provided above shows the percentage change of the British Pound against major currencies today. The British Pound has been the strongest against the Swiss Franc, while showing mixed performance against other currencies such as the US Dollar, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, and New Zealand Dollar. The heat map displayed offers a visual representation of the percentage changes of major currencies against each other, providing a quick reference for traders looking to gauge the strength of the British Pound relative to its counterparts.
