Key Moments
- GBP/USD traded near 1.3320, down 0.15%, after sliding to a one-week low amid persistent US Dollar strength.
- Support clustered around the 38.2% Fibonacci retracement at 1.3311 limited losses ahead of the UK Autumn Budget and FOMC decision.
- Technical signals showed fragile upside momentum, with GBP/USD constrained below the 200-day EMA at 1.3401.
GBP/USD Extends Pullback as Dollar Demand Remains Firm
The GBP/USD pair moved lower for a third consecutive session on Tuesday, extending its decline from last week’s peak near 1.3420, the highest level since September 16. During the first half of the European session, the pair slipped to a one-week trough and was last seen trading around the 1.3320 area, down 0.15% on the day, as steady buying interest in the US Dollar (USD) weighed on the British Pound.
Despite the latest setback, the downside appeared contained as market participants showed reluctance to add substantial new positions ahead of key macro events on Wednesday. UK Chancellor John Healey is scheduled to present his first Autumn Budget, set against Prime Minister Andy Burnham’s expansive spending agenda. Later, attention will turn to the outcome of the US Federal Reserve’s two-day policy meeting, with the decision expected to shape USD dynamics and offer fresh direction for GBP/USD.
Technical Picture: Support at 38.2% Fibonacci Level
On the technical front, GBP/USD retained a mildly constrained tone after failing recently to secure a sustained move above the 200-day Exponential Moving Average (EMA), positioned at 1.3401. The pair has retreated toward the middle of its latest Fibonacci retracement range, where initial support has emerged at the 38.2% level, located near 1.3311.
The Moving Average Convergence Divergence (MACD) indicator remained in positive territory, with the signal line still above zero but narrowing, indicating that bullish momentum is losing traction. At the same time, the Relative Strength Index (RSI) hovered just below the 50 threshold, pointing to an improvement in momentum that nonetheless remains vulnerable within a broader bearish structural context.
A clear move below the 38.2% Fibonacci retracement would expose the next downside levels at the 50.0% retracement at 1.3278 and the 61.8% retracement at 1.3244. These retracement levels together form a potential consolidation base for corrective pullbacks in the pair.
Key Resistance Levels on the Upside
On the topside, immediate resistance is aligned at the 23.6% Fibonacci retracement at 1.3353. Above that, the 200-day EMA at 1.3401 and the recent swing high around 1.3420 represent a key resistance cluster. A daily close above this zone would be required to alleviate the current bearish bias and pave the way for a more durable recovery in GBP/USD.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Relative Performance of the US Dollar This Week
The table below shows the percentage change of the US Dollar (USD) against major currencies this week. According to the data, the USD was strongest versus the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.57% | 0.35% | 0.43% | -0.19% | 0.14% | 0.02% | 0.52% | |
| EUR | -0.57% | -0.23% | -0.19% | -0.80% | -0.49% | -0.61% | -0.11% | |
| GBP | -0.35% | 0.23% | -0.02% | -0.57% | -0.26% | -0.32% | 0.09% | |
| JPY | -0.43% | 0.19% | 0.02% | -0.56% | -0.34% | -0.37% | 0.00% | |
| CAD | 0.19% | 0.80% | 0.57% | 0.56% | 0.26% | 0.13% | 0.67% | |
| AUD | -0.14% | 0.49% | 0.26% | 0.34% | -0.26% | -0.11% | 0.18% | |
| NZD | -0.02% | 0.61% | 0.32% | 0.37% | -0.13% | 0.11% | 0.47% | |
| CHF | -0.52% | 0.11% | -0.09% | -0.00% | -0.67% | -0.18% | -0.47% |
The heat map reflects percentage changes between the major currencies. The base currency is selected from the left-hand column, and the quote currency from the top row. For instance, choosing the US Dollar from the left and then moving across to the Japanese Yen cell shows the percentage move in USD (base)/JPY (quote).
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
