• GBP/USD managed to post a fifth daily gain in a row despite dollar’s bounce.
  • Pound underpinned by the announcement of a £30 billion stimulus package.
  • The 200-day SMA remains a key resistance level to break.

The GBP/USD pair is holding onto gains on Thursday and is poised to post its fifth consecutive daily gain, although it has moved off from its daily peak during the American session. After reaching a fresh three-week high of 1.2669 during the European session, the pair gave up most of its gains as the dollar strengthened amid a deterioration in market sentiment. However, the British pound has remained supported by the announcement of a £30 billion stimulus package. On Wednesday, Chancellor of the Exchequer Rishi Sunak laid out a detailed program including a job retention scheme and other means of boosting the economy.

The short-term technical picture remains bullish for the GBP/USD, with indicators in positive territory in the 4-hour chart and the RSI having already corrected oversold conditions, while the 50- and 100-period SMAs have made a bullish cross. Next resistance is now seen at 1.2688, 200-day SMA and the 1.2700 psychological level. A break through the 1.2688-1.2700 area could open the door to further gains targeting 1.2813, June monthly high. On the other hand, immediate support is seen at Wednesday's lows in the 1.2510 area, followed by the 20-day SMA at 1.2480. If the pound loses the latter, it could weaken the short-term bullish structure and pave the way to the June lows.

Support levels: 1.2600 1.2510 1.2480

Resistance levels: 1.2669 1.2690 1.2730

View Live Chart for the GBP/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

GBP/USD holds above 1.30 as UK Q2 GDP falls 20.4%

GBP/USD is on the back foot, trading closer to 1.30 amid dollar strength. UK Q2 GDP fell by 20.4%, within expectations. The devastating drop was priced in by markets.

GBP/USD News

Gold completes $200 collapse, trades below $1,900

Gold remains under immense pressure, trading below $1,900 after the biggest rout in seven years. Profit-taking and higher US yields weigh on the precious metal. US inflation figures are eyed.

Gold News

EUR/USD pressured toward 1.17 amid higher US yields

EUR/USD is falling toward 1.17 as US bond yields rise amid the US fiscal impasse and ahead of US inflation figures. Coronavirus headlines and eurozone industrial output are also in play.

EUR/USD News

Forex Today: Gold sell-off extends, dollar reigns supreme amid fiscal impasse, ahead of data

US bond yields are on the rise, supporting the recovering dollar and contributing to a sell-off in precious metals. The lack of progress in US fiscal talks and the increase in America's coronavirus deaths are among the depressing factors. US CPI is eyed.

Read more

WTI: Big move looks overdue

WTI could soon witness a big move in either direction. That’s because, the spread between Bollinger bands – volatility indicators placed 2 standard deviations above and below the 20-day simple moving average of price - has narrowed ...

Oil News

Forex Majors

Cryptocurrencies

Signatures