Market Analysis
The GBP/USD pair is trading with a downward trend for a second consecutive day on Friday but manages to stay above the previous day's low. Currently in the mid-1.2700s, it appears set for modest weekly gains amidst subdued US Dollar (USD) activity.
Despite the Federal Reserve's (Fed) hawkish stance and renewed USD strength following the Bank of Japan's (BoJ) inaction, there are signs of easing inflation in the US, fueling expectations of a Fed rate cut in September. This could limit USD gains and support the GBP/USD pair.
Technically, repeated failures to hold above 1.2800 and subsequent declines suggest caution for GBP/USD bulls ahead of the UK national election on July 4th. Mixed indicators on the daily chart indicate a need for confirmation of sustained selling pressure before concluding on the recent rally from April's year-to-date low.
Further declines could find support near the 1.2755-1.2750 zone, with potential drops towards 1.2715-1.2710 and further to 1.2690-1.2685, approaching the 100-day Simple Moving Average near 1.2640-1.2635. A clear break below this level would indicate bearish momentum and open the path for deeper declines.
On the upside, sustained strength above 1.2800 would signal potential moves towards 1.2860 and beyond, aiming to surpass recent highs towards 1.2900 and 1.2950, potentially targeting the psychological level of 1.3000 not seen since July 2023.
GBP/USD daily chart
GBPUSD
| OVERVIEW | |
|---|---|
| Today last price | 1.2753 |
| Today Daily Change | -0.0009 |
| Today Daily Change % | -0.07 |
| Today daily open | 1.2762 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1.2744 |
| Daily SMA50 | 1.2612 |
| Daily SMA100 | 1.264 |
| Daily SMA200 | 1.255 |
| LEVELS | |
|---|---|
| Previous Daily High | 1.2808 |
| Previous Daily Low | 1.2738 |
| Previous Weekly High | 1.2818 |
| Previous Weekly Low | 1.2695 |
| Previous Monthly High | 1.2801 |
| Previous Monthly Low | 1.2446 |
| Daily Fibonacci 38.2% | 1.2765 |
| Daily Fibonacci 61.8% | 1.2781 |
| Daily Pivot Point S1 | 1.2731 |
| Daily Pivot Point S2 | 1.27 |
| Daily Pivot Point S3 | 1.2662 |
| Daily Pivot Point R1 | 1.2801 |
| Daily Pivot Point R2 | 1.2839 |
| Daily Pivot Point R3 | 1.287 |
Paraphrasing text from "FX Street" all rights reserved by the original author.