British Pound Forecast: GBP/USD Falls to Fresh Monthly Low
GBP/USD extends the decline from the start of the week to register a fresh monthly low (1.3308).
Share this:
British Pound Outlook: GBP/USD
GBP/USD extends the decline from the start of the week to register a fresh monthly low (1.3308), and the weakness in the exchange rate may persist as a head-and-shoulders formation seems to be taking shape.
British Pound Forecast: GBP/USD Falls to Fresh Monthly Low
Keep in mind, GBP/USD failed to defend the June low (1.3371) after closing below the 50-Day SMA (1.3530) for the first time since April, with the depreciation in the exchange rate pushing the Relative Strength Index (RSI) toward oversold territory.
Join David Song for the Weekly Fundamental Market Outlook webinar. David provides a market overview and takes questions in real-time. Register Here
The developments indicate a potential change in trend as GBP/USD no longer responds to the positive slope in the moving average, and the weakness in the exchange rate may carry into August as it appears to be completing a key reversal pattern in July.
With that said, GBP/USD may continue to give back the rebound from the May low (1.3140) as it carves a series of lower highs and lows, but the exchange rate may consolidate over the remainder of the week should it snap the bearish price series.
GBP/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD falls to a fresh monthly low (1.3308) as it extends the decline from the start of the week, and a close below 1.3310 (100% Fibonacci extension) may push the exchange rate toward 1.3210 (50% Fibonacci extension).
- Next area of interest comes in around the May low (1.3140), with a move/close below the 1.3140 (78.6% Fibonacci extension) to 1.3150 (23.6% Fibonacci extension) region opening up 1.3010 (61.8% Fibonacci extension).
- However, lack of momentum to close below 1.3310 (100% Fibonacci extension) may curb the bearish price series, with a move above the 1.3410 (78.6% Fibonacci retracement) to 1.3460 (23.6% Fibonacci extension) area bringing 1.3650 (38.2% Fibonacci extension) on the radar.
Additional Market Outlooks
AUD/USD Fails to Test November High Ahead of Australia CPI
Canadian Dollar Forecast: USD/CAD Approaches Monthly High
EUR/USD Rally Unravels Ahead of Monthly High
USD/CHF Bounces Back Ahead of Monthly Low
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
GBP/USD, DAX Forecast: Two trades to watch
GBP/USD holds above 1.34 with US midterms and BoE in focus. DAX slips as the global tech selloff continues.
US Dollar, GBP/USD, USD/CAD, USD/CHF, Gold Weekly Technical Outlook 11 2 2026
Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities, and equity indices charts this week.
GBP/USD outlook: Currency Pair of the Week | November 2, 2026
The GBP/USD heads into a crowded week of event risk, with the midterm elections, a Bank of England rate decision and Friday's non-farm payrolls report all capable of moving markets sharply. The greenback remains fundamentally well supported by a hawkish Federal Reserve, but much of that is already priced in, while the renewed sell-off in technology stocks has exposed its vulnerability.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.