#GBPUSD @ 1.17920 -imp levels: seesawed in a 1.1820-1.1900 range on Fed’s Powell speech.

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• GBP/USD seesawed in a 1.1820-1.1900 range on Fed’s Powell speech.
• Fed’s Powell speech tone was hawkish but cautious, trying not to derail the markets.
• GBP/USD Price Analysis: Rallied towards 1.1900 as Powell’s ended its speech but has erased those gains.

The pair currently trades last at 1.17920.

The previous day high was 1.1864 while the previous day low was 1.1784. The daily 38.2% Fib levels comes at 1.1834, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1815, expected to provide resistance.

The GBP/USD seesaws as Fed Chair Powell takes the stand at the Jackson Hole Symposium. During the day, the GBP/USD bounced off a daily low at 1.1775 and rallied sharply to a fresh daily high at 1.1900. However, as Powell finished his speech, the GBP/USD retraced from highs of the days towards the 1.1820s area. At the time of writing, the GBP/USD trades volatile, around the 1.1800-1.1810 area.

In his speech, Jerome Powell said that the central bank is moving “purposefully” to a sufficiently restrictive to return inflation to 2% while adding that restoring price stability will take some time, requiring a “forcefully” use of the central bank’s tools.

Powell added that the Federal funds rate at a long-run neutral estimate of 2.25% – 2.50% is “not a place to stop or pause.” He noted that the US central bank would be data-dependent for the September meeting. Even though he mentioned that the Fed will slow the pace of rate hikes, he emphasized that restoring price stability would require keeping a restrictive policy for “some time.”

After Jerome Powell’s remarks, money market futures odds of a Fed 75 bps rate hike diminished to 56.5%, vs. 46.5% before the speech. Meanwhile, the US Dollar Index recovered some ground after hitting a low at 107.588, recovering the 108.000 figure, but it is stills below its opening price.

At the same time, on its final reading, the University of Michigan Consumer Sentiment came in at 58.2 vs. forecasts of 55.2. Earlier on Friday, the Fed’s favorite measure for inflation rose 0.1% MoM, vs. 0.3% foreseen, while annually based, core PCE decelerated to 4.6% from 4.7%.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1807 at the time of writing. Pair opened at 1.1832 and is trading with a change of -0.06 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2044, 50 SMA 1.2059, 100 SMA @ 1.2318 and 200 SMA @ 1.2843.

The previous day high was 1.1864 while the previous day low was 1.1784. The daily 38.2% Fib levels comes at 1.1834, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1815, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1789, 1.1746, 1.1709
• Pivot resistance is noted at 1.187, 1.1908, 1.1951

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