GBP/USD Price Analysis: Advances steadily above 1.2800 on BoE’s Pill remarks
-
GBP/USD
rises
to
1.2842,
boosted
by
BoE’s
Huw
Pill’s
caution
against
basing
policy
on
single
data
points. -
Bullish
momentum
intact,
targeting
June
12
high
of
1.2861
and
YTD
high
of
1.2894. -
Key
support
levels:
1.2800,
1.2755/70,
and
1.2690
(50-day
moving
average)
for
potential
reversals.
The
Pound
Sterling
resumed
its
uptrend
on
Wednesday
and
rallied
sharply
on
Bank
of
England
Chief
Economist
Huw
Pill’s
remarks
that
the
Monetary
Policy
Committee
(MPC)
should
be
cautious
in
seeing
a
single
piece
of
data
as
a
trigger
for
policy
reassessment.
Hence,
the
GBP/USD
trades
at
1.2842,
posting
gains
of
0.44%.
GBP/USD
Price
Analysis:
Technical
outlook
From
a
technical
standpoint,
the
GBP/USD
resumed
its
uptrend
after
bouncing
off
weekly
lows
set
on
Tuesday
of
around
1.2779,
with
buyers
stepping
in
and
lifting
the
exchange
rate.
Momentum
favors
buyers,
as
depicted
by
the
Relative
Strength
Index
(RSI),
and
the
pair
might
test
the
year-to-date
(YTD)
high
in
the
near
term.
The
GBP/USD
first
resistance
would
be
the
June
12
high
at
1.2861.
Once
cleared
the
next
stop
will
be
the
YTD
high
at
1.2894,
followed
by
the
1.2900
figure
and
the
1.3000
mark.
Conversely,
if
GBP/USD
shifts
negatively
and
drops
below
1.2800,
the
first
support
would
be
the
confluence
of
two
support
trendlines
at
around
1.2755/70,
followed
by
the
50-day
moving
average
(DMA)
at
1.2690.
A
change
of
trend
is
seen
once
the
pair
tumbles
below
the
June
27
cycle
low
of
1.2612.
GBP/USD
Price
Action
–
Daily
Chart
Pound
Sterling
FAQs
The
Pound
Sterling
(GBP)
is
the
oldest
currency
in
the
world
(886
AD)
and
the
official
currency
of
the
United
Kingdom.
It
is
the
fourth
most
traded
unit
for
foreign
exchange
(FX)
in
the
world,
accounting
for
12%
of
all
transactions,
averaging
$630
billion
a
day,
according
to
2022
data.
Its
key
trading
pairs
are
GBP/USD,
aka
‘Cable’,
which
accounts
for
11%
of
FX,
GBP/JPY,
or
the
‘Dragon’
as
it
is
known
by
traders
(3%),
and
EUR/GBP
(2%).
The
Pound
Sterling
is
issued
by
the
Bank
of
England
(BoE).
The
single
most
important
factor
influencing
the
value
of
the
Pound
Sterling
is
monetary
policy
decided
by
the
Bank
of
England.
The
BoE
bases
its
decisions
on
whether
it
has
achieved
its
primary
goal
of
“price
stability”
–
a
steady
inflation
rate
of
around
2%.
Its
primary
tool
for
achieving
this
is
the
adjustment
of
interest
rates.
When
inflation
is
too
high,
the
BoE
will
try
to
rein
it
in
by
raising
interest
rates,
making
it
more
expensive
for
people
and
businesses
to
access
credit.
This
is
generally
positive
for
GBP,
as
higher
interest
rates
make
the
UK
a
more
attractive
place
for
global
investors
to
park
their
money.
When
inflation
falls
too
low
it
is
a
sign
economic
growth
is
slowing.
In
this
scenario,
the
BoE
will
consider
lowering
interest
rates
to
cheapen
credit
so
businesses
will
borrow
more
to
invest
in
growth-generating
projects.
Data
releases
gauge
the
health
of
the
economy
and
can
impact
the
value
of
the
Pound
Sterling.
Indicators
such
as
GDP,
Manufacturing
and
Services
PMIs,
and
employment
can
all
influence
the
direction
of
the
GBP.
A
strong
economy
is
good
for
Sterling.
Not
only
does
it
attract
more
foreign
investment
but
it
may
encourage
the
BoE
to
put
up
interest
rates,
which
will
directly
strengthen
GBP.
Otherwise,
if
economic
data
is
weak,
the
Pound
Sterling
is
likely
to
fall.
Another
significant
data
release
for
the
Pound
Sterling
is
the
Trade
Balance.
This
indicator
measures
the
difference
between
what
a
country
earns
from
its
exports
and
what
it
spends
on
imports
over
a
given
period.
If
a
country
produces
highly
sought-after
exports,
its
currency
will
benefit
purely
from
the
extra
demand
created
from
foreign
buyers
seeking
to
purchase
these
goods.
Therefore,
a
positive
net
Trade
Balance
strengthens
a
currency
and
vice
versa
for
a
negative
balance.
British
Pound
PRICE
Today
The
table
below
shows
the
percentage
change
of
British
Pound
(GBP)
against
listed
major
currencies
today.
British
Pound
was
the
strongest
against
the
New
Zealand
Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.35% | 0.19% | -0.14% | -0.03% | 0.74% | 0.20% | |
| EUR | 0.09% | -0.25% | 0.32% | -0.03% | 0.05% | 0.81% | 0.29% | |
| GBP | 0.35% | 0.25% | 0.56% | 0.23% | 0.30% | 1.06% | 0.52% | |
| JPY | -0.19% | -0.32% | -0.56% | -0.31% | -0.24% | 0.49% | -0.03% | |
| CAD | 0.14% | 0.03% | -0.23% | 0.31% | 0.10% | 0.85% | 0.30% | |
| AUD | 0.03% | -0.05% | -0.30% | 0.24% | -0.10% | 0.75% | 0.20% | |
| NZD | -0.74% | -0.81% | -1.06% | -0.49% | -0.85% | -0.75% | -0.54% | |
| CHF | -0.20% | -0.29% | -0.52% | 0.03% | -0.30% | -0.20% | 0.54% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
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).
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