{"id":16283,"date":"2025-01-09T09:53:38","date_gmt":"2025-01-09T09:53:38","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16283"},"modified":"2025-01-09T09:53:38","modified_gmt":"2025-01-09T09:53:38","slug":"gbpusd-extends-decline-as-dollar-holds-ground","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gbpusd-extends-decline-as-dollar-holds-ground\/","title":{"rendered":"GBPUSD Extends Decline as Dollar Holds Ground"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-1024x559.png\" alt=\"\" class=\"wp-image-16612\" srcset=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-1024x559.png 1024w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-300x164.png 300w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-768x419.png 768w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-500x273.png 500w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-400x218.png 400w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-350x191.png 350w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download-200x109.png 200w, https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/01\/download.png 1408w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GBP\/USD<\/strong> dropped to <strong>1.22383<\/strong>, its lowest intraday level since November 2023, before closing at <strong>1.22732<\/strong>.<\/li>\n\n\n\n<li>Key weekly support remains at <strong>1.2039<\/strong>, the September 2023 low, according to UOB research.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The British pound continued its decline against the U.S. dollar on Tuesday, with <strong>GBP\/USD<\/strong> touching an intraday low of <strong>1.22383<\/strong> before closing slightly higher at <strong>1.22732<\/strong>. A massive UK market selloff and a cautious Bank of England outlook have kept the Pound struggling.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The pound tumbles to its weakest level against the US dollar in over one year as investors\u2019 concerns over the UK fiscal and inflation outlook send the nation\u2019s assets into a tailspin <a href=\"https:\/\/t.co\/2AHZt7FU0O\">https:\/\/t.co\/2AHZt7FU0O<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1877252200570761331?ref_src=twsrc%5Etfw\">January 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Across the pond, the Fed has led the charge with its hawkish stance, maintaining pressure on the pair as the US Dollar sees a <a href=\"https:\/\/t.co\/C7jMA5q8Ua\">multi-decade high<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/01\/image-9-1024x446.jpeg\" alt=\"\" class=\"wp-image-16284\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: GBPUSD falls to 1.227, testing key support at 1.223 as bearish momentum dominates trading sentiment, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The <strong>21-week EMA crossing below the 55-week EMA<\/strong> underscores sustained downside momentum. This bearish signal and weak fundamentals suggest further declines in the coming weeks.<\/p>\n\n\n\n<p>With the current bearish momentum intact, GBPUSD may test support near <strong>1.2230<\/strong> in the short term. A break below this level could bring <strong>1.2039<\/strong> into focus. However, oversold conditions on some technical indicators could trigger a brief recovery.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Trading Jitters Wobble Pound<\/h2>\n\n\n\n<p>The Pound held its head above rising waters briefly on recent announcements of the potential for President-elect Donald Trump&#8217;s <a href=\"https:\/\/t.co\/bUdqrrb5vR\">tariffs <\/a>to apply only to critical exports but floundered in light of the UK options market fearing a Truss-esque policy reprisal.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Wednesday was the busiest day for pound options trading since the currency slumped toward an all-time low in 2022, an omen of deepening jitters around the UK currency <a href=\"https:\/\/t.co\/MUoHFUhVOV\">https:\/\/t.co\/MUoHFUhVOV<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1877234984781484165?ref_src=twsrc%5Etfw\">January 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Dollar Strength and Rate Divergence<\/h2>\n\n\n\n<p>The Dollar&#8217;s strength comes not just from its better-than-expected <a href=\"https:\/\/t.co\/70tlUC7tea\">JOLTS data<\/a> and services sector activity. The 10-year US Treasury Yield saw a hike of nearly 5% in recent weeks, drawing in more intrigue from market participants in the greenback.<\/p>\n\n\n\n<p>For now, GBP\/USD will likely stay under pressure unless the pound finds support from stronger-than-expected U.K. economic data or shifts in market sentiment.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>&nbsp;now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GBP\/USD hits 1.2238, its lowest since Nov 2023, as bearish momentum persists; focus shifts to key 1.2039 support level. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":16612,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[53,12,38],"class_list":["post-16283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-cable","tag-forex","tag-pound"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=16283"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media\/16612"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=16283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=16283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=16283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}