Cable regained traction and retested 100DMA barrier, on bounce from session low at 1.2437, posted after BoE rate decision.
Sterling keeps bullish bias despite warning tone from the central bank on persisting uncertainty and further Brexit delay which would hurt UK economic growth.
The BoE MPC kept interest rate unchanged at 0.75% and kept QE at 435B, while minutes of September's meeting showed that BoE MPC voted 9-0 to keep rates unchanged.
The central bank said that UK growth slowed due to global slowdown but remains slightly positive, labor market remains tight and UK current account deficit has likely narrowed in Q2, presenting positive factors which counterweight negative impact from Brexit fears.
Quick recovery after dip to 1.2437 (also Wednesday's low) signal that bulls keep control but still lacking strength for final push through pivotal barriers at 1.2500 zone (falling 100DMA/of 1.3381/1.1958. Near-term outlook remains positive while the price holds above key supports at 1.2400 (10DMA/daily cloud top), but extended congestion between 1.2400 and 1.2500 pivots, cannot be ruled out.

Res: 1.2501; 1.2526; 1.2558; 1.2579
Sup: 1.2476; 1.2437; 1.2400; 1.2379



Interested in GBP/USD technicals? Check out the key levels

    1. R3 1.2588
    2. R2 1.2552
    3. R1 1.2512
  1. PP 1.2475
    1. S1 1.2435
    2. S2 1.2399
    3. S3 1.2359

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

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

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bulls need an upbeat German IFO Expectations figure

EUR/USD dips as lingering US-China tensions bode well for the US dollar. Technical indicators suggest scope for a re-test of the lower end of the multi-week trading range. Deeper losses may remain elusive if the German IFO numbers beat estimates. 


GBP/USD is trading below 1.22 amid negative rates speculation

GBP/USD is trading below 1.22, as investors continue speculating about the BOE setting negative rates. PM Johnson is under pressure after his senior adviser violated the lockdown. The UK is on a bank holiday today.


Forex Today: Dollar in demand amid high Sino-American tensions, thin liquidity expected

The new week has kicked off with dollar strength as the US and China have kept tensions high. Thin liquidity and potential erratic movements may occur as the United States and United Kingdom are on holiday.

Read more

Gold down by $6 in Asia, weekly chart shows bullish trend exhaustion

Gold, a safe-haven asset, is flashing red at press time even though the growth-linked currencies like the Aussie dollar are struggling to gain altitude. Technical charts indicate scope for deeper declines in the short-term.

Gold News

USD/JPY keeps mild gains above previous resistance line, 200-HMA

USD/JPY bounces off an immediate support line to print a three-day winning streak. Thursday’s high appears on the bulls’ radar as immediate resistance. 107.00 could lure the bears below 200-HMA.


Forex Majors