On Wednesday, there is some interest from buyers at the price of 1.24968 for GBPUSD, although it does not lead to further buying activity.

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• GBP/USD attracts some buyers on Wednesday, albeit lacks follow-through.

The pair currently trades last at 1.24968.

The previous day high was 1.2531 while the previous day low was 1.2459. The daily 38.2% Fib levels comes at 1.2487, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2504, expected to provide resistance.

The GBP/USD pair edges higher during the Asian session on Wednesday, albeit lacks follow-through and remains confined in a familiar range held over the past week or so. Spot prices currently trade around the 1.2500 psychological mark and remain well within the striking distance of a three-month low touched last Thursday.

The US Dollar (USD) languishes near the weekly low and turns out to be a key factor acting as a tailwind for the GBP/USD pair, though expectations that the Bank of England (BoE) is nearing the end of its rate-hiking cycle cap the upside. BoE Governor Andrew Bailey told lawmakers last week that the central bank is much nearer to ending its run of rate increases. Furthermore, the UK employment details released on Tuesday pointed to a cooling labour market and do not justify another rate hike after the widely anticipated lift-off in September.

The Federal Reserve (Fed), on the other hand, is expected to pause at its policy meeting next week. The markets, however, are still pricing in the possibility of one more 25 bps rate hike by the end of this year. The bets were reaffirmed by the upbeat US macro data released last week, which pointed to a resilient economy. Moreover, the fact that inflation is not cooling fast enough should allow the Fed to keep rates higher for longer. Hence, the focus remains on the US CPI report, due later today, which will provide fresh cues about the Fed’s future rate hike path.

In the meantime, the prospects for further policy tightening by the US central bank remain supportive of elevated US Treasury bond yields. This, along with the prevalent cautious market mood, should act as a tailwind for the safe-haven Greenback and contribute to keeping a lid on any meaningful appreciating move for the GBP/USD pair. Traders now look to the UK macro data dump, including the monthly GDP report, to grab short-term opportunities during the European session. The fundamental backdrop, meanwhile, warrants some caution for bulls.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2498 at the time of writing. Pair opened at 1.249 and is trading with a change of 0.06 % .

The pair is trading below its 20 Daily moving average @ 1.2624, below its 50 Daily moving average @ 1.2753 , below its 100 Daily moving average @ 1.2656 and above its 200 Daily moving average @ 1.243

The previous day high was 1.2531 while the previous day low was 1.2459. The daily 38.2% Fib levels comes at 1.2487, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2504, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2456, 1.2422, 1.2385
• Pivot resistance is noted at 1.2527, 1.2565, 1.2599

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