- GBP/USD edges lower toward 1.3500 in the European session on Tuesday.
- BoE policymakers testified on the monetary policy before the UK Treasury Select Committee.
- The technical outlook suggests that buyers struggle to retain control.
Following Monday’s rally, GBP/USD loses traction and declines toward 1.3500 in the European session on Tuesday. The technical outlook points to a loss of bullish momentum as investors await US data.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.35% | 0.25% | 0.14% | 0.12% | 0.58% | 0.52% | 0.18% | |
| EUR | -0.35% | -0.06% | -0.18% | -0.21% | 0.25% | 0.26% | -0.15% | |
| GBP | -0.25% | 0.06% | -0.12% | -0.15% | 0.31% | 0.32% | -0.08% | |
| JPY | -0.14% | 0.18% | 0.12% | -0.02% | 0.42% | 0.40% | 0.11% | |
| CAD | -0.12% | 0.21% | 0.15% | 0.02% | 0.40% | 0.47% | 0.06% | |
| AUD | -0.58% | -0.25% | -0.31% | -0.42% | -0.40% | 0.00% | -0.41% | |
| NZD | -0.52% | -0.26% | -0.32% | -0.40% | -0.47% | -0.01% | -0.40% | |
| CHF | -0.18% | 0.15% | 0.08% | -0.11% | -0.06% | 0.41% | 0.40% |
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).
While testifying on the Monetary Policy Report before the UK Treasury Select Committee on Tuesday, Bank of England (BoE) Governor Andrew Bailey noted that they have not seen particular inflation surprises and reiterated that he prefers a gradual and careful approach to policy-easing.
BoE policymaker Swati Dhingra argued that an overly restrictive policy was risking suppressing demand and disincentivizing investment. Meanwhile, BoE policymaker Catherine Mann adopted a more cautious tone, saying that future policy decisions will require certainty that inflation is on track. “Services price inflation is above what I view as consistent with getting Consumer Price Index (CPI) back to target,” Mann added.
Following these mixed remarks, GBP/USD finds it difficult to attract buyers.
In the second half of the day, the US Bureau of Labor Statistics will publish the JOLTS Job Openings data for April. A noticeable increase in this data, with a reading of 7.7 million or higher, could support the USD with the immediate reaction and cause GBP/USD to extend its correction. On the flip side, a disappointing reading below 7 million could hurt the USD and open the door for a rebound in the pair.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart declines toward 50, highlighting a loss of bullish momentum. The 20-period and the 50-period Simple Moving Average (SMA) form the first support level at 1.3500. In case GBP/USD falls below this level and starts using it as resistance, technical sellers could take action. In this scenario, 1.3410 (100-period SMA) and 1.3365 (200-period SMA) could be seen as next support levels.
On the upside, the first resistance level could be spotted at 1.3530 (mid-point of the ascending channel) ahead of 1.3600 (static level, round level) and 1.3700 (static level, round level).
