The British Pound (GBP) weakened against the US Dollar (USD) on Thursday, reaching its lowest level since November 2023 below 1.2250. This decline was fueled by a sharp rise in UK gilt yields, reaching their highest levels in over 16 years. Analysts attributed the move to technical factors and a global trend in bond yields.
GBP/USD dropped to its weakest level since November 2023 below 1.2250 on Thursday. The 10-year UK gilt yield rose to its highest level in over 16 years. The pair remains vulnerable despite turning technically oversold in the near term. After losing nearly 1% on Wednesday, GBP/USD extended its slide and touched its lowest level since November 2023 below 1.2250 in the early European session on Thursday. The pair remains deep in negative territory below 1.
GBP/USD Technical Analysis GBP/USD recovered after dipping below the lower limit of the descending regression channel coming from December 9. Meanwhile, the Relative Strength Index indicator on the 4-hour chart rose slightly above 30, suggesting that the pair's bearish bias remains intact after staging a technical correction from oversold levels. On the downside, static support seems to have formed at 1.2250 ahead of 1.2200 and 1.2140 . Looking north, first resistance could be spotted at 1.
GBP/USD British Pound US Dollar Gilt Yields UK Economy Interest Rates Inflation
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