The GBPUSD pair at 1.26070 is pulling back from its peak levels in five weeks due to the upcoming monthly data release in the UK and the Fed’s decision. @nehcap predicts that the downside will be minimal.

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• GBP/USD retreats from the highest levels in five weeks as UK monthly data dump, Fed decision loom.

The pair currently trades last at 1.26070.

The previous day high was 1.2599 while the previous day low was 1.2487. The daily 38.2% Fib levels comes at 1.253, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2557, expected to provide support.

GBP/USD fades upside momentum at a multi-day high on the key day comprising the US Federal Reserve (Fed) verdict and the monthly UK data dump. That said, the Cable pair remains dicey near 1.2600 after rising the most in a week to prod the highest level since May 11 the previous day. Apart from the pre-data/event anxiety, the Pound Sterling also justifies the technical clues to tease the sellers on important data.

That said, overbought RSI conditions and an ascending resistance line from June 01, around 1.2615 by the press time, are the first-tier challenges for the GBP/USD bulls. Also restricting the Cable pair’s upside is the Doji candlestick on the four-hour play marked at the multi-day high, suggesting a pullback in prices.

Hence, the quote is likely to consolidate the latest gains, which in turn highlights the 61.8% Fibonacci retracement level of its May month fall, around 1.2535. It’s worth noting that the said technical level is also known as the golden Fibonacci ratio.

In a case where the GBP/USD drops below the said key Fibonacci support, it can fall to the 50% Fibonacci retracement near the 1.2500 round figure.

It should be noted, however, that the bullish MACD may join the 200-SMA level of 1.2485 to challenge the Cable bears afterward.

On the contrary, a clear upside past the latest peak of near 1.2625 could defy the bearish bias and propel the GBP/USD price towards challenging the previous monthly high of around 1.2680.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.261 at the time of writing. Pair opened at 1.2505 and is trading with a change of 0.84% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2442, 50 SMA 1.2471, 100 SMA @ 1.231 and 200 SMA @ 1.2021.

The previous day high was 1.2599 while the previous day low was 1.2487. The daily 38.2% Fib levels comes at 1.253, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2557, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2462, 1.2418, 1.2349
• Pivot resistance is noted at 1.2574, 1.2643, 1.2686

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