During Friday’s Asian session, the GBPUSD pair rose to a new high not seen in 14 months with a value of 1.27808.
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- GBP/USD climbs to a fresh 14-month top during the Asian session on Friday.
The pair currently trades last at 1.27808.
The previous day high was 1.2786 while the previous day low was 1.263. The daily 38.2% Fib levels comes at 1.2726, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2689, expected to provide support.
The GBP/USD pair trades with a mild positive bias for the fourth successive day on Friday and touches its highest level since April 2022 during the Asian session. The pair is currently placed just below the 1.2800 round-figure mark and looks to build on this week’s blowout rally amid the prevalent selling bias surrounding the US Dollar (USD).
Despite the Federal Reserve’s (Fed) hawkish signal that borrowing costs may still need to rise by as much as 50 bps by the end of this year, investors seem convinced that the US central bank is getting closer to the peak of its policy tightening cycle. This was reinforced by the overnight slump in the US treasury bond yields, which, along with the post-ECB surge in the shared currency, keep the USD depressed near a five-week low and acts as a tailwind for the GBP/USD pair.
The safe-haven Greenback is further undermined by a generally positive tone around the equity markets. bolstered by a move by the People’s Bank of China (PBOC) to cut rates on its medium-term loans on Thursday. The British Pound (GBP), on the other hand, draws support from expectations that the Bank of England (BoE) is not yet done with rate increases as inflation in the UK, which rose 8.7% YoY in April, is still running at more than four times its 2% target.
In fact, the markets have fully priced in another 25 bps lift-off, from 4.5% to 4.75% on June 22. Moreover, investors now see a greater chance that the rate will peak at 5.5% later this year. This, in turn, suggests that the path of least resistance for the GBP/USD pair is to the upside. That said, the Relative Strength Index (RSI) on the daily chart has moved on the verge of breaking into the overbought territory and warrants some caution before placing fresh bullish bets.
Nevertheless, spot prices remain on track to register strong weekly gains and end in the green for the third straight week. In the absence of any relevant market-moving economic releases, either from the UK or the US, the US bond yields, along with the broader risk sentiment, will play a key role in influencing the USD price dynamics. This should provide some impetus to the GBP/USD pair and allow traders to grab short-term opportunities on the last day of the week.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2786 at the time of writing. Pair opened at 1.2784 and is trading with a change of 0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2786 |
| 1 | Today Daily Change | 0.0002 |
| 2 | Today Daily Change % | 0.0200 |
| 3 | Today daily open | 1.2784 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2476, 50 SMA 1.2484, 100 SMA @ 1.2319 and 200 SMA @ 1.2039.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2476 |
| 1 | Daily SMA50 | 1.2484 |
| 2 | Daily SMA100 | 1.2319 |
| 3 | Daily SMA200 | 1.2039 |
The previous day high was 1.2786 while the previous day low was 1.263. The daily 38.2% Fib levels comes at 1.2726, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2689, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.268, 1.2577, 1.2524
- Pivot resistance is noted at 1.2836, 1.2889, 1.2993
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2786 |
| Previous Daily Low | 1.2630 |
| Previous Weekly High | 1.2590 |
| Previous Weekly Low | 1.2369 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2726 |
| Daily Fibonacci 61.8% | 1.2689 |
| Daily Pivot Point S1 | 1.2680 |
| Daily Pivot Point S2 | 1.2577 |
| Daily Pivot Point S3 | 1.2524 |
| Daily Pivot Point R1 | 1.2836 |
| Daily Pivot Point R2 | 1.2889 |
| Daily Pivot Point R3 | 1.2993 |
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