GBP/USD Forecast

The British pound initially did try to rally during the trading session on Friday but gave back gains as it looks like we continue to struggle overall.

The GBP/USD exchange rate has been in a steep sell-off since September 30th, falling from a high of 1.3428 to 1.2600, its lowest level since July 2. This sell-off accelerated as the US dollar index (DXY) surged from the year-to-date low of 100 to $107.

Following the release of stronger-than-expected US inflation data, selling of the GBP/USD currency pair increased with losses extending to the support level of 1.2672, the lowest for the currency pair in three months.

During my daily analysis of major currency pairs, the GBP/USD pair has captured a bit of attention due to the fact that we are at a major crossroads when it comes to the technical analysis aspect of this market.

At the beginning of this week, the GBP/USD exchange rate is facing pressure, and we will be monitoring the key support levels that will be tested in the coming days.

Along with the US presidential elections and Trump's victory, both the Bank of England and the Federal Reserve cut interest rates by 25 basis points last week.

The British Pound has rallied a bit during the trading session early on Thursday as the Bank of England cut interest rates by 25 basis points.

The pound fell more than 1%, falling below $1.29, as the stronger dollar gained momentum after early US election results suggested a higher probability of a Donald Trump victory.

The British pound has declined against both the U.S. dollar and the euro amid uncertainty surrounding the U.S. presidential election results.

At the start of trading this week, the GBP/USD exchange rate rose to 1.2998 before settling around 1.2950 at the time of writing this analysis.

The British pound experienced considerable noise during Monday's trading session, which isn’t surprising given the potential disruptions and uncertainties this week.

For two days in a row, the GBP/USD currency pair has been trying to rebound higher to compensate for the strong losses it suffered last week, which extended to the 1.2843 support level, its lowest in three months.

The British pound has been fairly strong during the trading session on Friday as the jobs number in the United States came out as adding just 12,000 jobs last month.

Oct 31, 2024, Technical analysis of the pound sterling against the dollar GBP/USD

The British Pound fluctuated throughout Wednesday’s trading session, with the 1.30 level acting as a significant psychological barrier that has previously proven important.