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 Nov 10, 2023, 20:21 GMT 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.