The British pound against the US dollar, trading at 1.21958, experiences a slowdown near the 1.2200 level due to a strengthening of the US dollar.

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• GBP/USD loses momentum around 1.2200 amid a rally of the USD.

The pair currently trades last at 1.21958.

The previous day high was 1.2256 while the previous day low was 1.2194. The daily 38.2% Fib levels comes at 1.2218, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2232, expected to provide resistance.

The GBP/USD pair remains under selling pressure and trades in negative territory for the fourth consecutive week during the early European session on Tuesday. The major pair currently trades near 1.2203, losing 0.07% on the day.

The Bank of England (BoE) decided to maintain the benchmark rate unchanged at a 15-year high level of 5.25%, halting a run of 14 consecutive rate hikes since December 2021. This, in turn, might weigh on the British Pound (GBP) against the US Dollar. The BoE official stated that further meetings are possible, indicating that the BoE could raise or halt interest rates if necessary.

On the other hand, the hawkish stance from the Federal Reserve (Fed) lifts the US Dollar and acts as a headwind for the GBP/USD pair. Early Tuesday, Minneapolis Federal Reserve Bank President, Neel Kashkari stated that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. Earlier, the Federal Reserve Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly stressed that although inflation is slowing, future rate rises are likely. While Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain elevated, and the Fed should be fully committed to bringing inflation to 2%.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above the 106.00 mark, near the highest level since November. Additionally, the 10-year yield climbed to 4.546%, a level not seen since October 2007.

Market participants will monitor US CB Consumer Confidence for September and New Home Sales due later on Tuesday. The attention will shift to the UK Gross Domestic Product (GDP) for the second quarter and the US Core Personal Consumption Expenditure (PCE) Price Index released on Friday.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2203 at the time of writing. Pair opened at 1.2212 and is trading with a change of -0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2471, 50 SMA 1.2649, 100 SMA @ 1.2639 and 200 SMA @ 1.2434.

The previous day high was 1.2256 while the previous day low was 1.2194. The daily 38.2% Fib levels comes at 1.2218, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2232, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2185, 1.2159, 1.2123
• Pivot resistance is noted at 1.2247, 1.2282, 1.2309

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