- GBP/CNY fell from 9.00 to about 8.82.
- Support 8.76 to 8.80; resistance 8.87.
- Watch US PPI and UK inflation on 18 November.
- 1¥8.8000 Support floorUpper bound of the 8.76 to 8.80 support safety net.
- 2¥8.7600 October low · SupportBase of the support zone; a close below opens a deeper slide.
- 3¥8.8700 First resistanceFirst resistance level; a close above targets 8.91 and 9.00.
- 4¥8.9100 20-day moving average · ResistanceResistance and upside target located at the 20-day moving average.
- 5¥9.0000 Last week's high · ResistanceMajor resistance and upside target near last week's high.
TradingView Lightweight Charts™ · Yahoo Finance data
The pound has lost ground this week. GBP/CNY now trades near 8.82. That is down from about 9.00 last week. The Bank of England raised Bank Rate to 4.00% on 5 November. Even so, sterling slid. Why? And where does it stop? The chart shows you.
Figure 1: GBP/CNY key levels in navy, red and gold. Data as of 13 November 2026.
Walking Through the Chart
The first dot on the left represents last week’s high which was slightly higher than 9.00. The black line drops down to the red dot. This means that price dropped approximately 0.18 yuan during the last week. This is today’s price of approximately 8.82. The dotted red lines above are areas where prices may find resistance. Price will need to cross over 8.87 first. After crossing over 8.87, price will need to cross over the 20-day moving average located at 8.91. After crossing over the 20-day moving average, price will then need to cross over 9.00. The blue area beneath represents areas of support.
Support extends from 8.76 to 8.80. The October low can be found at the base of the blue area. Think of the blue area as a safety net. Buyers have previously bought in this area. When support is broken, price tends to fall much faster. The green arrow indicates the direction of price movement for bulls. The red arrow indicates the direction of price movement for bears. Please keep in mind that the above listed values were derived from the GBP/USD pair using a conversion rate of 6.67 yuan for each US dollar. Read about that pair in our GBP/USD forecast.
Why the Pound Is Sliding
The dollar remains strong and is close to its highest level since March of last year. In other words, a stronger dollar tends to cause money to flow out of the U.K. currency (the pound). When interest rates are higher in the U.S., investors find the dollar more appealing than other currencies. There is an increasing likelihood that the Federal Reserve will raise rates again in December. Christopher Waller, one of the members of the Federal Reserve Board of Governors, suggested that the Fed could potentially increase rates by as much as 50 basis points.
For four consecutive days, the British pound has declined against the dollar. Economic indicators for the U.K. have been somewhat conflicting. Gross Domestic Product grew at a rate of 0.7 percent during the third quarter. This was consistent with what many economists had expected. Consumer Price Index inflation rose to 3.5 percent in September. Watch the next report from the Office for National Statistics. It lands on 18 November. Hot numbers would back another Bank hike.
The Yuan Side
The yuan is strong too. It is up about 5% this year. China’s exports jumped 35.2% in October, says Trading Economics. The trade surplus is over $1 trillion for the year. That pulls cash into yuan. Our AUD/INR forecast shows another Asian currency holding firm.
The central bank wants to slow the climb. It raised the FX reserve ratio from 4% to 6%. That starts on 15 November. It also set a weaker daily fix than traders expected. That is a clear signal. Beijing wants a calm yuan, not a runaway one. Follow its notices on the People’s Bank of China site. Our EUR/JPY analysis shows how central banks shape trends.
Three Scenarios
- Bullish: a close above 8.87 targets 8.91, then 9.00.
- Bearish: a close below 8.76 opens a deeper slide.
- Neutral: a range between 8.76 and 8.87.
Short-term, we need to monitor the U.S. PPI today, along with the U.K. employment data scheduled for release on November 17th. In the long run, there are two competing factors that will impact the pound. On one hand, a strong U.S. dollar negatively impacts the pound. On the other hand, an increasing value of the Chinese Yuan (CNY) has a downward effect on the GBP/CNY exchange rate. We can see how the U.S. dollar is performing elsewhere in our USD/SEK forecast. Keep your risk small. Use a stop loss. Do not trade the headline. Wait for a daily close. No setup works every time. Where will you take profit if 8.87 breaks?
Frequently Asked Questions
Why is GBP/CNY falling?
The U.S. dollar is making it difficult for the British pound to remain at current levels, but the Chinese yuan is remaining stable. As a result, the exchange rate of GBP/CNY dropped from approximately 9.00 to approximately 8.82 over the course of one week.
What is the key GBP/CNY support?
Support sits at 8.76 to 8.80. The October low is 8.76.
What is the key GBP/CNY resistance?
Resistance sits at 8.87, then 8.91 and 9.00.
What is your outlook on GBP/CNY?
Anonymous · no sign-up · results from the last 30 days · not investment advice