The GBPUSD pair is still under pressure due to a cautious market sentiment, as investors await important speeches from leaders of the Bank of England (BoE) and the Federal Reserve (Fed).

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• GBP/USD remains on the back foot amid market’s cautious mood ahead of key speeches from BoE, Fed leaders.

The pair currently trades last at 1.27356.

The previous day high was 1.276 while the previous day low was 1.2704. The daily 38.2% Fib levels comes at 1.2738, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2725, expected to provide support.

GBP/USD clings to mild losses around 1.2730 heading into Wednesday’s London open, reversing the previous day’s rebound amid mixed catalysts of late.

Even so, escalating fears of higher interest rates at the Bank of England (BoE) and the resulted UK recession woes weigh on the Pound Sterling prices. On the contrary, mostly upbeat US data joins mixed concerns about China to prod the Cable sellers.

While portraying the same, the UK’s two-year Gilt jumps to the highest levels in 15 years, to 5.24% at the latest, as well as flagging fears of a 6.5% BoE peak rate in 2024.

On the other hand, hopes of more stimulus from China contrasts with the growing fears of slower economic recovery in Beijing, as well as the fears of the Sino-American tussles due to the latest AI curbs on Chinese Chip manufacturing companies, luring the GBP/USD bears. Further, a slew of the US data allowed the US Dollar to pare intraday losses and increase the hawkish Fed bets, which in turn prod the Pound Sterling bulls of late. Notable among them were the Durable Goods Orders, Conference Board’s (CB) Consumer Confidence Index and a few housing numbers.

Against this backdrop, S&P500 Futures pare the biggest daily jump in a fortnight with mild losses whereas the US Treasury bond yields remain depressed after rising in the last two consecutive days to portray the market’s dicey momentum.

Looking ahead, speeches from BoE’s Bailey and Fed Chair Powell will be crucial to watch for the immediate GBP/USD moves. Major attention, however, will be given to the UK recession woes, which in turn could please GBP/USD bears.

A 12-day-old rising support line, near 1.2720 by the press time, restricts the short-term downside of the GBP/USD pair.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.273 at the time of writing. Pair opened at 1.2748 and is trading with a change of -0.14% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2625, 50 SMA 1.2536, 100 SMA @ 1.2362 and 200 SMA @ 1.2089.

The previous day high was 1.276 while the previous day low was 1.2704. The daily 38.2% Fib levels comes at 1.2738, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2725, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2715, 1.2681, 1.2659
• Pivot resistance is noted at 1.2771, 1.2793, 1.2827

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