There is a slight increase in buying of the GBPUSD currency pair at 1.24836 during the Asian session, but it is not sustained.

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• GBP/USD attracts some buying during the Asian session, albeit lacks follow-through.

The pair currently trades last at 1.24836.

The previous day high was 1.2509 while the previous day low was 1.2446. The daily 38.2% Fib levels comes at 1.247, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2485, expected to provide resistance.

The GBP/USD pair edges higher during the Asian session on Friday and moves away from a three-month high, around the 1.2445 region touched the previous day. Spot prices, however, remain below the 1.2500 psychological mark and lack bullish conviction, warranting some caution before positioning for any meaningful appreciating move.

A modest pullback in the US Treasury bond yields, along with signs of stability in the equity markets, hold back traders from placing fresh bullish bets around the safe-haven US Dollar (USD), especially after the recent rally to its highest level since March. This turns out to be a key factor lending some support to the GBP/USD pair. The downside for the USD, however, seems cushioned in the wake of growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer.

Moreover, the markets are still pricing in the possibility of one more 25 bps lift-off by the end of this year. The bets were reaffirmed by the incoming stronger-than-expected US macro data, including the Weekly Jobless Claims on Thursday. The hawkish outlook should act as a tailwind for the US bond yields and the Greenback. This, along with expectations that the Bank of England (BoE) is nearing the end of its policy tightening cycle, could weigh on the British Pound and cap the GBP/USD pair.

In fact, BoE Governor Andrew Bailey told lawmakers on Wednesday that the central bank is much nearer to ending its run of rate increases, though warned that borrowing costs might still have further to rise because of stubbornly high inflation. In the absence of any relevant market-moving economic releases, either from the UK or the US, the fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the GBP/USD pair has formed a near-term bottom.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2488 at the time of writing. Pair opened at 1.2472 and is trading with a change of 0.13 % .

The pair is trading below its 20 Daily moving average @ 1.2655, below its 50 Daily moving average @ 1.2766 , below its 100 Daily moving average @ 1.2655 and above its 200 Daily moving average @ 1.2426

The previous day high was 1.2509 while the previous day low was 1.2446. The daily 38.2% Fib levels comes at 1.247, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2485, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2442, 1.2413, 1.2379
• Pivot resistance is noted at 1.2505, 1.2539, 1.2568

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