Created
: 2024.07.04
2024.07.04 11:44
The Pound Sterling (GBP) continues its winning streak, which began on June 27. The GBP/USD pair trades around 1.2750 during the Asian session on Thursday, which could be attributed to the softer data released from the United States (US) on Wednesday.
Markets are expected to closely monitor the UK general elections on Thursday. Britain appears poised to elect Labour Party leader Keir Starmer as its next prime minister, ousting Rishi Sunak's Conservatives after 14 often turbulent years. A forecast by polling company Survation, as reported by Reuters on Tuesday, predicts the Labour Party will win a record number of seats in the national election.
The US Dollar (USD) struggles due to the decline in the US Treasury yields, which could be attributed to the escalated speculations of the Federal Reserve (Fed) reducing interest rates in 2024. US markets will be closed on Thursday in observance of the Independence Day holiday.
The GBP/USD pair trades around 1.2750 on Thursday. The analysis of the daily chart shows a bearish bias as the pair consolidates within a descending channel. However, the 14-day Relative Strength Index (RSI) is above the 50 level, suggesting any decline going forward to be mild. Further movement may indicate a clearer directional trend.
The GBP/USD pair could test the upper boundary of the descending channel around the level of 1.2780. A breakthrough above this level could lead the pair to test June's high of 1.2860.
On the downside, the key support appears at the 21-day Exponential Moving Average (EMA) at the 1.2694 level. A break below this level could exert pressure on the GBP/USD pair to navigate the area near the lower boundary of the descending channel around the level of 1.2570.
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.00% | -0.04% | -0.19% | -0.02% | -0.15% | -0.10% | -0.11% | |
EUR | -0.00% | -0.04% | -0.19% | -0.02% | -0.13% | -0.12% | -0.05% | |
GBP | 0.04% | 0.04% | -0.14% | 0.02% | -0.09% | -0.09% | -0.04% | |
JPY | 0.19% | 0.19% | 0.14% | 0.16% | 0.03% | 0.06% | 0.11% | |
CAD | 0.02% | 0.02% | -0.02% | -0.16% | -0.12% | -0.08% | -0.06% | |
AUD | 0.15% | 0.13% | 0.09% | -0.03% | 0.12% | 0.04% | 0.07% | |
NZD | 0.10% | 0.12% | 0.09% | -0.06% | 0.08% | -0.04% | 0.03% | |
CHF | 0.11% | 0.05% | 0.04% | -0.11% | 0.06% | -0.07% | -0.03% |
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).
The U.K. Parliamentary Election released by the United Kingdom Parliament elects 650 members to the United Kingdom's Lower House of Parliament. It is a significant event to determine the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth in the u.K. The election might affect the GBP volatility.
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Created
: 2024.07.04
Last updated
: 2024.07.04
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