GBP/USD outlook: Cable fell to seven-week low on negative rates/trade talks concerns; psychological 1.20 support comes in focus

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is consolidating above new seven-week low (1.2074) posted overnight, extending weakness after last week's nearly 2.5% fall. Friday's long bearish candle (the pair was down 1.2% for the day) weighs, as weekly close above pivotal supports at 1.2174/64 (Fibo 38.2% of 1.1409/1.2647 / five-week range low) generated bearish signal on emerge from extended sideways mode and confirmation of a double-top. Comments from BoE's official that the central bank for more options such as negative interest rates and disharmony of UK/EU trade talks, further pressure pound. Negative daily studies add to weak structure as bears focus targets at 1.2028 (50% of 1.1409/1.2647) and 1.20 (psychological support), loss of which would spark stronger bearish acceleration. The upside should be ideally capped by broken pivots at 1.2164/74 (reinforced by falling 5DMA), with repeated daily close below these levels needed to confirm bearish stance. Only break and close above falling 10DMA (1.2281) would sideline bears.

Res: 1.2164; 1.2174; 1.2200; 1.2281
Sup: 1.2074; 1.2028; 1.2000; 1.1882

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

1. R3 1.2343
2. R2 1.2291
3. R1 1.2206
PP 1.2154
1. S1 1.2068
2. S2 1.2017
3. S3 1.1931

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold climbs above $5,200 on geopolitical tensions, trade uncertainty

Gold price jumps to around $5,230 during the early Asian session on Tuesday. The rally of the precious metal is bolstered by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. Traders brace for the US January Producer Price Index report on Friday for fresh impetus.

Solana DeFi platform Step Finance to close operations following treasury hack

The Solana based decentralized finance platform Step Finance announced it will end all operations effective immediately following a breach that drained its treasury.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.