- The GBP/USD pair is positioned above the descending channel, indicating a weak bearish bias.
- The upper border of the descending channel acts as a major support near 1.2540 level.
- Immediate resistance appears at the nine-day moving average at 1.2565.
The GBP/USD pair is correcting its recent losses, trading around the 1.2550 level during European hours on Tuesday. Analysis of the daily chart indicates a weak bearish slope as the pair is positioned above the upper border of a descending channel pattern.
However, the 14-day Relative Strength Index (RSI) remains below 50, indicating a continued bearish bias. In addition, GBP/USD is below the nine- and 14-day Exponential Moving Averages (EMAs), indicating weaker price momentum in the short term. A decisive break above the exponential moving averages may indicate a shift from a bearish bias to a bullish bias.
On the downside, GBP/USD is testing the upper border of the descending channel near 1.2540. A reversal back into the channel would reinforce the bearish bias, which could push the pair towards a seven-month low at 1.2487, which was last recorded on November 22.
A decisive break below a seven-month low could intensify bearish momentum, which could push GBP/USD towards a yearly low of 1.2299, which was last recorded on April 22. Further downside might target the lower border of the descending channel near 1.2160 level.
On the upside, GBP/USD is testing the spot barrier at the nine-day exponential moving average (EMA) at 1.2565, followed by the 14-day EMA at 1.2585. A successful break above these levels could boost bullish momentum, opening the way for a move towards the six-week high at 1.2811, reached on December 6.
GBP/USD: daily chart
The price of the British pound today
The table below shows the percentage change of the British Pound (GBP) against the major currencies listed today. The British pound was the strongest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.12% | -0.04% | -0.50% | 0.14% | 0.06% | 0.18% | -0.05% | |
| euro | 0.12% | 0.09% | -0.36% | 0.26% | 0.18% | 0.30% | 0.06% | |
| GBP | 0.04% | -0.09% | -0.47% | 0.17% | 0.10% | 0.23% | -0.03% | |
| JPY | 0.50% | 0.36% | 0.47% | 0.67% | 0.57% | 0.69% | 0.48% | |
| Canadian | -0.14% | -0.26% | -0.17% | -0.67% | -0.09% | 0.03% | -0.20% | |
| Australian dollar | -0.06% | -0.18% | -0.10% | -0.57% | 0.09% | 0.12% | -0.12% | |
| New Zealand dollar | -0.18% | -0.30% | -0.23% | -0.69% | -0.03% | -0.12% | -0.24% | |
| Swiss franc | 0.05% | -0.06% | 0.03% | -0.48% | 0.20% | 0.12% | 0.24% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the quoted currency is chosen from the top row. For example, if you select the British pound from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).