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British Pound Latest (GBP) - GBP/USD Rallies Capped, GBP/JPY Holds Range

British Pound Latest (GBP) - GBP/USD Rallies Capped, GBP/JPY Holds Range

Justin McQueen, Strategist

GBP/USD, GBP/JPY Price Analysis & News

  • GBP/USD Rallies Capped as Pair Struggles for Direction
  • GBP/JPY Short Range In Play Before Possible Month-End Flows

GBP/USD Rallies Capped as Pair Struggles for Direction

Implied Daily Range: 1.3000-1.3130

Once again, the Pound continues to struggle for direction with yesterday’s rally stalling above 1.3140 as the US Dollar shows signs of life ahead of the Jackson Hole Symposium. Price action overnight has been much of the same with GBP/USD failing to maintain rallies, which in turn raises downside pressures in the pair. Near-term support lies at 1.3070 where a break below opens the door to 1.3050. As it stands, with little scheduled on the economic calendar, price action will remain choppy until the Jackson Hole Symposium on Thursday where all eyes will be firmly fixed on Chair Powell’s virtual speech.

GBP/USD Daily Time Frame

British Pound Latest (GBP) - GBP/USD Rallies Capped, GBP/JPY Holds Range

Source: IG

GBP/USD Weekly Outlook

GBP/JPY Short Range In Play Before Possible Month-End Flows

Buoyancy in risk markets and a bid in US yields sees cross-JPY on the front-foot. In turn, GBP/JPY has reclaimed the 139 handle, trading in the middle of its recent 138-140 range. Expectations are for this range to hold ahead of the Jackson Hole Symposium. Elsewhere, focus will be on the month-end flows, which are supportive for the Pound, particularly against the US Dollar and the Japanese Yen given the relative outperformance in US and Japanese equities over the UK. Although, this will likely come into play in the final two sessions of the month. (Prior month-end price action)

10 Most Popular Candlestick Patterns

GBPJPY Daily Time Frame

British Pound Latest (GBP) - GBP/USD Rallies Capped, GBP/JPY Holds Range

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