On Thursday, when GBPUSD reached 1.26435, it encountered a certain amount of supply and was pushed down by a slight rise in the US Dollar.
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- GBP/USD meets with some supply on Thursday and is pressured by a modest US Dollar uptick.
The pair currently trades last at 1.26435.
The previous day high was 1.2699 while the previous day low was 1.2601. The daily 38.2% Fib levels comes at 1.2662, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2638, expected to provide support.
The GBP/USD pair edges lower during the Asian session on Thursday and moves further away from its highest level since April 2022, around the 1.2700 mark touched the previous day. The pair currently trades just below mid-1.2600s, down nearly 0.15% for the day, though the fundamental backdrop remains tilted in favour of bullish traders.
The US Dollar (USD) edges higher and looks to build on the overnight bounce from a one-month low, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. The modest USD uptick could be attributed to the Federal Reserve’s (Fed) hawkish outlook and the intent to resume the rate-hiking cycle, signalling that borrowing costs will increase by another 50 bps by end-December. In the post-meeting press conference, Fed Chair Jerome Powell said that the pause was out of caution, to allow the central bank to gather more information before determining if rates need to rise again.
Furthermore, Powell described US growth and the job market as holding up better than expected. This, in turn, lifted market bets for another 25 bps lift-off at the July FOMC policy meeting, which assists the USD to attract some buyers. The downside for the GBP/USD pair, meanwhile, remains cushioned as market participants seem convinced that the Bank of England (BoE) will be far more aggressive in policy tightening to contain stubbornly high inflation. The bets were reaffirmed by the upbeat UK jobs data released on Tuesday, which came in to show a near-record wage growth and a lower unemployment rate.
This, in turn, suggests that the path of least resistance for the GBP/USD pair is to the upside and supports prospects for an extension of the recent upward trajectory witnessed over the past three weeks or so. Traders now look to the US economic docket, featuring the release of monthly Retail Sales, the usual Weekly Initial Jobless Claims, the Empire State Manufacturing Index, the Philly Fed Manufacturing Index and Industrial Production figures. The data might influence the USD price dynamics later during the early North American session and allow traders to grab short-term opportunities around the major.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2648 at the time of writing. Pair opened at 1.2666 and is trading with a change of -0.14 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2648 |
| 1 | Today Daily Change | -0.0018 |
| 2 | Today Daily Change % | -0.1400 |
| 3 | Today daily open | 1.2666 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2457, 50 SMA 1.2477, 100 SMA @ 1.2316 and 200 SMA @ 1.2032.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2457 |
| 1 | Daily SMA50 | 1.2477 |
| 2 | Daily SMA100 | 1.2316 |
| 3 | Daily SMA200 | 1.2032 |
The previous day high was 1.2699 while the previous day low was 1.2601. The daily 38.2% Fib levels comes at 1.2662, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2638, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2612, 1.2558, 1.2514
- Pivot resistance is noted at 1.271, 1.2753, 1.2808
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2699 |
| Previous Daily Low | 1.2601 |
| Previous Weekly High | 1.2590 |
| Previous Weekly Low | 1.2369 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2662 |
| Daily Fibonacci 61.8% | 1.2638 |
| Daily Pivot Point S1 | 1.2612 |
| Daily Pivot Point S2 | 1.2558 |
| Daily Pivot Point S3 | 1.2514 |
| Daily Pivot Point R1 | 1.2710 |
| Daily Pivot Point R2 | 1.2753 |
| Daily Pivot Point R3 | 1.2808 |
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