The GBPUSD pair reached a new high in the past 15 months on Tuesday and is being upheld by a variety of factors.

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• GBP/USD touches a fresh 15-month peak on Tuesday and is supported by a combination of factors.

The pair currently trades last at 1.28748.

The previous day high was 1.2868 while the previous day low was 1.275. The daily 38.2% Fib levels comes at 1.2823, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2796, expected to provide support.

The GBP/USD pair trades with a positive bias for the fourth successive day on Tuesday and climbs to the 1.2875 region, or a fresh high since April 2022 during the Asian session.

The US Dollar (USD) prolongs its downtrend witnessed over the past week or so and drops to a nearly three-week low, which turns out to be a key factor acting as a tailwind for the GBP/USD pair. Two Fed officials said Monday that the end to the current monetary policy tightening cycle is getting close. This led to the overnight downfall in the US Treasury bond yields and keeps the USD bulls on the defensive. The British Pound (GBP), on the other hand, remains well supported by expectations that the Bank of England (BoE) will be far more aggressive in policy tightening to combat high inflation.

In fact, the markets are currently pricing in the possibility of a further 130 bps of tightening by the BoE through to the turn of the year. Moreover, BoE Governor Andrew Bailey noted on Monday that inflation is unacceptably high and the aim is to bring it down to the 2% target. Bailey added that headline inflation is expected to decrease significantly over the rest of the year, though both price and wage increases at current rates are inconsistent with the inflation target. This lends additional support to the GBP/USD pair ahead of the release of the UK monthly employment details.

The market focus will remain glued to wage growth data, which is expected to show that Average Earnings including bonuses rose to 6.8% during the three months to May from the 6.5% previous. Apart from any major disappointment, the crucial jobs report might continue to underpin the Sterling Pound (GBP). In the absence of any relevant market-moving economic data from the US, the aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/USD pair is to the upside and any corrective decline is more likely to get bought into.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2868 at the time of writing. Pair opened at 1.2861 and is trading with a change of 0.05 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2732, 50 SMA 1.2581, 100 SMA @ 1.2421 and 200 SMA @ 1.2165.

The previous day high was 1.2868 while the previous day low was 1.275. The daily 38.2% Fib levels comes at 1.2823, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2796, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2785, 1.2709, 1.2667
• Pivot resistance is noted at 1.2903, 1.2945, 1.3021

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