- The GBP/USD is continuing Thursday's losses, dropping towards the 1.2100 handle heading into the week's close.
- Friday's early bounce gave way to further red on the charts, with Sterling bidders finding little support.
- Sterling traders will be looking ahead to Tuesday's wages and employment figures for the UK.
The GBP/USD slipped further on Friday, seeing a mild intraday rebound into 1.2222 before slumping back into fresh lows for the week and tapping 1.2122. With broader markets favoring the US Dollar (USD) on risk aversion sparked by Federal Reserve (Fed) rate fears, the Pound Sterling (GBP) is struggling to find a bid heading into Friday's market close.
The GBP/USD rose steadily through the first half of the trading week, marking in a high of 1.2337, but gains were to be short-lived after Thursday's US inflation-fueled broad-market dog-pile back into the US Dollar, sending the GBP/USD back into the red for the week.
Next week will see plenty of action for both the Pound Sterling and the US Dollar, with Tuesday's double-feature of UK labor figures and a US retail sales update.
The UK's Employment Change for August is expected to moderate, from -207K to -195K, while earnings (excluding bonuses) for the quarter into August are expected to hold steady at 3.8%.
Labor data for the UK will be followed up by an appearance from Bank of England (BoE) policymaker Dr. Swati Dhingra and another round of 30-year bond auctions.
On the Greenback side, US Retail Sales for September are forecast to see declines, from 0.6% to 0.2%, with Industrial Production for the same period seen similarly slipping from 0.4% to a scant 0.1%.
GBP/USD Technical Outlook
The GBP/USD is down 0.7% from the week's opening bids after taking a run at the 1.2100 handle, and the pair remains firmly off the week's highs of 1.2337, down over 1.6% from the top set on Wednesday.
The pair slipped the 200-hour Simple Moving Average (SMA) near the 1.2200 major level on Thursday, and the 50-hour SMA has near-term median prices accelerating declines, moving bearishly towards 1.2220 and set for a bearish cross if markets don't stabilize Pound Sterling bids.
Daily candles likewise show the GBP/USD trapped firmly in bear territory, with 2023's low bids sitting nearby at 1.1802. The 50-day SMA is set for a bearish cross of the 200-day SMA near 1.2450, with the Pound Sterling steeply off 2023's highs of 1.3142.
GBP/USD Hourly Chart
GBP/USD Daily Chart
GBP/USD Technical Levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0500, looks to post weekly losses
EUR/USD extended its daily decline toward 1.0500 in the second half of the American session, pressured by the souring market mood. Despite the bullish action seen earlier in the week, the pair remains on track to register weekly losses.
GBP/USD falls below 1.2150 as USD rebounds
Following an earlier recovery attempt, GBP/USD turned south and declined below 1.2100 in the second half of the day on Friday. The negative shift seen in risk mood amid rising geopolitical tensions helps the US Dollar outperform its rivals and hurts the pair.
Gold advances to fresh multi-week highs above $1,920
Gold extended its daily rally and climbed above $1,920 for the first time in over two weeks on Friday. Escalating geopolitical tensions ahead of the weekend weigh on T-bond yields and provide a boost to XAU/USD, which remains on track to gain nearly 5% this week.
Bitcoin could be an alternative to US-listed companies but not in the short term
Bitcoin has dipped below $27,000, adding to the subdued cryptocurrency market sentiment. While short-term price concerns persist, analysts predict a rebound based on historical figures.
Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole
Nvida's stock price opened marginally lower on Friday after Reuters reported that the Biden administration is attempting to close a loophole that allowed Chinese companies access to state-of-the-art computer chips used for AI.