The British Pound to US Dollar exchange rate, currently at 1.27274, is encountering resistance as it retreats from its two-week high. The forecast from Nehcap is that any potential decline in value will be limited.

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• GBP/USD takes offers to extend pullback from the highest level in a fortnight.

The pair currently trades last at 1.27274.

The previous day high was 1.2781 while the previous day low was 1.2674. The daily 38.2% Fib levels comes at 1.274, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2715, expected to provide support.

GBP/USD consolidates the first weekly gains in three while refreshing the intraday low near 1.2730 amid very early Friday morning in London. In doing so, the Cable pair justifies the market’s preparations for the all-important US employment report for June, as well as the reassessment of the hawkish bets on the Bank of England (BoE), not to forget the downbeat signals from the options market.

Also read: GBP/USD grinds higher past 1.2700 even as options market signals prod Cable bulls, US NFP eyed

Technically, the Pound Sterling pair’s failure to defend the previous day’s recovery from the 100-Exponential Moving Average (EMA) joins sluggish MACD signals and a U-turn from a three-week-long horizontal resistance near 1.2770-80 to lure GBP/USD bears.

It’s worth noting, however, that a 1.5-month-old rising support line and the 200-EMA, respectively near 1.2655 and 1.2630, appear extra filters toward the south and can easily challenge the bears even if they manage to conquer the 100-EMA support of 1.2680.

Alternatively, an upside break of the 1.2770-80 resistance area can propel the GBP/USD price towards the yearly high marked in June near 1.2850.

However, the RSI conditions challenge the Pound Sterling’s run-up beyond the same, which if ignored could propel prices to the 1.3000 psychological magnet.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.273 at the time of writing. Pair opened at 1.274 and is trading with a change of -0.08% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2701, 50 SMA 1.2569, 100 SMA @ 1.2404 and 200 SMA @ 1.2149.

The previous day high was 1.2781 while the previous day low was 1.2674. The daily 38.2% Fib levels comes at 1.274, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2715, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2682, 1.2624, 1.2575
• Pivot resistance is noted at 1.2789, 1.2839, 1.2897

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