GBP/USD

DailyFX is the leading portal for forex trading news, charts, indicators and analysis. Every tool you need to trade in the foreign exchange market.

[ Recommended by James StanleyGet Your Free JPY Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=JPY) [JPY](https://www.dailyfx.com/jpy) may be your pair… But, on that topic, caution is warranted as the [USD/JPY](https://www.dailyfx.com/usd-jpy) pair is now testing the 150.00 level which raises questions around how policy-makers in Japan might handle the matter. We saw this zone first tested through on Monday, with price pushing all the way up for a test of the 170.00 [psychological level](https://www.dailyfx.com/education/support-and-resistance/psychological-levels-and-round-numbers.html), which was then followed by a pullback. This puts focus on the next item of support, around .8650, which then opens the door for support at .8585. [ Recommended by James StanleyGet Your Free GBP Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=GBP) Price action did adhere to the previously-defined range, which has been in-place for more than five years now, but price moved all the way up for a test of two-year-highs at .9270. [price pulled back to find support at prior resistance around 1.0932](https://www.dailyfx.com/analysis/british-pound-technical-analysis-gbp-usd-gbp-jpy-eur-gbp-20221010.html). [breakout](https://www.dailyfx.com/education/market-conditions/breakout-ballistics-in-trading-and-analysis.html) has been a theme that’s been brewing for the past few months as this current resistance zone held bulls in April and June and is now being traded through. [GBP/USD](https://www.dailyfx.com/gbp-usd)has shown a number of short-term trends of late, longer-term price action continues to consolidate inside of the range built in late-September through early-October. A bullish break of 1.1350 would look to a re-test of yesterday’s high at 1.1440 and then the longer-term zone that runs from 1.1460-1.1500. To learn more about price action or chart patterns, check out our [DailyFX Education](https://www.dailyfx.com/education)section.

"UK political uncertainty is a key downside risk to our new forecasts. We see a high risk that UK PM Liz Truss resigns which suggests GBP can remain ...

"UK political uncertainty is a key downside risk to our new forecasts. I have made a mistake; I accept responsibility; I resign.” How much those words need to be said by *many* others - especially the ones now grinning as they assume power again," Every added. Obviously it’s a political coup," says Michael Every, a global strategist at Rabobank. One can understand why foreign investors will want to steer clear of sterling until the political environment becomes a lot clearer," he added. 1) the information she sent out related to a new policy to let in more high skilled workers, and stimulate growth - which was relevant to the [@OBR_UK]assessment of... Dollar during early trading on Thursday while also rising against most other major counterparts but with European and some Asia Pacific currencies proving to be exceptions to that rule.

(Updated 14:45, 20/10/22) The Pound US Dollar (GBP/USD) exchange rate rebounded strongly today. After touching a weekly low of $1.1169, GBP/USD then surged ...

Overall, the uncertainty could cause some volatility in GBP exchange rates today. Markets expect unemployment claims to remain low, but a surprise fall or rise could boost or dent the Dollar, respectively. However, if the political instability continues, the Pound could face further losses. UK politics remains the focus for GBP investors today. As a result, the mixed market mood could turn sour. The political uncertainty in the UK continues, with some analysts questioning whether Prime Minister Liz Truss can survive the day. Rumours swirled, with allegations of bullying and manhandling alongside confusion over whether the chief whip and deputy chief whip had resigned. However, more instability will almost certainly follow, as the Conservative Party must now elect a new leader – the third UK PM this year. Markets seemed somewhat relieved that the instability of her premiership was coming to an end. Meanwhile, Sterling may have enjoyed a surprising boost from the Bank of England’s (BoE) Ben Broadbent. Broadbent’s speech saw bond yields decline, which in turn will make it easier for the UK government to balance the books in its Halloween fiscal plan. Expectations of higher interest rates have pushed up government bond yields in recent months, creating financial instability and inflating the cost of government debt.

The British pound has bounced a bit during the trading session on Thursday as we continue to see a lot of consolidation around the Forex world.

Furthermore, the 1.15 level has a lot of psychology attached to it as well, so does make a certain amount of sense that we would see resistance there as well. After all, the market continues to see a lot of confusion, but that should not be huge surprise considering just how all over the place the Bank of England is at the moment. The one thing that we do know is that the Federal Reserve will continue to be very tight with its monetary policy, so it is more likely than not only a matter of time before the US dollar picks up strength again.