GBPUSD /Sterling Hits 8-Month Low Amid Bearish Momentum
Updated
GBP/USD Analysis
Sterling Weakens to an 8-Month Low
The British pound has dropped to $1.240, marking its lowest level in eight months. This decline is driven by concerns over the UK’s economic resilience and a stronger US dollar.
The UK economy remains stagnant, with revised Q3 figures showing no growth, adding to the challenges faced by Prime Minister Keir Starmer's new government. Furthermore, the Bank of England's dovish stance in its final 2024 rate decision has placed additional pressure on the pound.
Trade tensions also weigh on the pound, particularly with former US President Trump's proposed tariffs, which could disrupt UK trade.
Technical Outlook
The GBP/USD pair maintains a bearish momentum, though a correction to 1.2485 is possible, especially if the price stabilizes above 1.2409.
Sterling Weakens to an 8-Month Low
The British pound has dropped to $1.240, marking its lowest level in eight months. This decline is driven by concerns over the UK’s economic resilience and a stronger US dollar.
The UK economy remains stagnant, with revised Q3 figures showing no growth, adding to the challenges faced by Prime Minister Keir Starmer's new government. Furthermore, the Bank of England's dovish stance in its final 2024 rate decision has placed additional pressure on the pound.
Trade tensions also weigh on the pound, particularly with former US President Trump's proposed tariffs, which could disrupt UK trade.
Technical Outlook
The GBP/USD pair maintains a bearish momentum, though a correction to 1.2485 is possible, especially if the price stabilizes above 1.2409.
- If the price breaks 1.2485 and closes a 4-hour candle above it, this could signal the start of a bullish continuation towards 1.2610.
- Conversely, if the price reverses and stabilizes below 1.2409, it could drop further to test 1.2315.
A sustained move below 1.2409 would strengthen the bearish outlook, with potential targets at 1.2315 and 1.2215.
Key levels
Pivot Line: 1.2409
Resistance lines: 1.2485, 1.2532, 1.2611
Support Lines: 1.2315, 1.2215, 1.2150
Trend Outlook
Consolidation: Between 1.2409 and 1.2485
Bearish: Below 1.2400
Bullish: Above 1.2486
Trade active
GBP/USD Live Update
The price dropped approximately 350 pip, according to our previous analysis.
The price is expected to consolidate between 1.2215 and 1.2075 until a breakout occurs.
Stay alert for updates on key levels and potential market movements.
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