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- GBP/USD stabilized above 1.2600 after posting small gains on Monday and Tuesday.
- Cautious market mood limits the pair’s upside early Wednesday.
- A disappointing ADP Employment Change data could weigh on the USD.
GBP/USD registered gains for the second straight day on Tuesday but failed to preserve its bullish momentum early Wednesday. The near-term technical outlook highlights the pair’s indecisiveness as investors stay on the sidelines while waiting for the US ADP Employment Change data for August.
Pound Sterling price today
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the weakest against the US Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.02% | -0.03% | 0.07% | 0.28% | 0.31% | 0.39% | 0.08% | |
| EUR | -0.03% | -0.05% | 0.05% | 0.26% | 0.29% | 0.36% | 0.02% | |
| GBP | 0.02% | 0.04% | 0.09% | 0.30% | 0.33% | 0.40% | 0.07% | |
| CAD | -0.06% | -0.03% | -0.08% | 0.21% | 0.25% | 0.34% | -0.02% | |
| AUD | -0.27% | -0.25% | -0.29% | -0.21% | 0.04% | 0.13% | -0.23% | |
| JPY | -0.31% | -0.29% | -0.34% | -0.25% | -0.06% | 0.06% | -0.24% | |
| NZD | -0.38% | -0.38% | -0.42% | -0.33% | -0.12% | -0.07% | -0.35% | |
| CHF | -0.04% | -0.02% | -0.07% | 0.03% | 0.24% | 0.27% | 0.34% |
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The risk rally seen in the American session on Tuesday helped GBP/USD stretch higher. Investors started to reassess the probability of the Federal Reserve raising the policy rate one more time this year after the JOLTS report showed that the number of job openings fell for the third month in a row in July, touching its lowest level since May 2021 at 8.8 million.
Employment in the US private sector is expected to rise 195,000 in August following the 324,000 increase recorded in July. A reading between 100,000 and 150,000 could cause investors to continue to lean toward a no change in the Fed policy rate in 2023 and hurt the USD. According to the CME Group FedWatch Tool, markets are currently pricing in a 50% probability that the Fed interest rate will remain unchanged at 5.25%-5.5% range by the end of the year.
Market participants will also pay close attention to the action in Wall Street. The S&P 500 Futures were last seen losing 0.15% on the day. On Tuesday, the S&P 500 Index gained 1.45%. In case major equity indexes in the US open in the red and continue to push lower, the USD could stay resilient against its rivals even if it weakens initially in response to the ADP jobs data.
GBP/USD Technical Analysis
1.2630 (former resistance, static level) aligns as pivot point for GBP/USD in the near term. As long as the pair stays above that level, buyers could remain interested. In that scenario, 1.2670 (50-period Simple Moving Average (SMA)) and 1.2700 (100-period SMA, Fibonacci 23.6% retracement of the latest downtrend) could be set as next recovery targets ahead of 1.2770 (200-period SMA).
If 1.2630 fails, GBP/USD could come under renewed technical bearish pressure and retreat toward 1.2600 (20-period SMA, psychological level) and 1.2560 (end-point of the downtrend).
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