Forex

GBP/USD Outlook: Pound Retreats As The Dollar Index Rebounds

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Written By: Abdullah Sarwar

Nov 10, 2023, 20:21 GMT 20:21

Summary:

GBP/USD Outlook: GBP to USD is becoming weak due to a recovery in the US dollar strength (DXY) index. 1.215 needs to be held.

GBP/USD has been in a downtrend this whole week as the dollar gained strength amid rate hike rumors. The hawkish remarks made by Jerome Powell yesterday further added fuel to the fire. As a result, the Dollar Strength Index is up 1% this week which weighed in on the GBP to USD pair.

The exchange rate for the Pound in terms of the Dollar is currently at $1.22 after falling for five consecutive trading sessions. The pair is expected to find some support around the $1.21 support level. Notably, the pair is down by 7.2% from its yearly peak.

GBP To USD Chart

GBP/USD Outlook

GBPUSD has faced a perfect rejection from the 200-MA which is evident in the chart below. The pair is currently sitting 1.9% below the 200 MA level. The bears are expected to have a field day if the cable pair breaks under $1.21 support as this move has the potential to flip the GBP/USD pair forecast extremely bearish.

For the bulls to even have a glimmer of hope, the pair has to make some major moves to reclaim the 200 MA level in the daily chart.

This post was last modified on %s = human-readable time difference 20:21

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.