GBP/USD outlook: Cable holds firm bearish stance ahead of Powell's speech

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable remains in red for the fourth straight day and probes below psychological 1.20 support, hitting new one-month low.

Strong support at 1.1951 (200DMA / Fibo 23.6% of 1.0348/1.2447) is under pressure and break here to generate fresh bearish signal for extension towards pivotal support at 1.1841 (Jan 6 low), loss of which would confirm a double-top 1.2446 and risk deeper pullback.

Bearish momentum is rising on daily chart and in addition to multiple bear crosses of MA’s (10/20/30/55) maintains pressure, though oversold stochastic may produce headwinds to bears.

Stronger dollar on Fed’s hawkish shift in rate view also contributes to pound’s negative near-term stance.

Focus turns to Fed chair Powell who will be speaking today, with fresh pressure on sterling expected on more hawkish than expected remarks from Fed chief.

Broken 1.20 level reverted to immediate resistance, with upticks to be capped by daily cloud top (1.2099) and daily Kijun-sen (1.2144) to keep fresh bears in play.

Res: 1.2000; 1.2077; 1.2099; 1.2144.
Sup: 1.1951; 1.1900; 1.1841; 1.1796.

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

1. R3 1.2137
2. R2 1.2107
3. R1 1.2065
PP 1.2035
1. S1 1.1993
2. S2 1.1964
3. S3 1.1922

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 softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold stays firm above $5,150 as Trump's delivers State of the Union speech

Gold finds fresh demand and regains the $5,150 level following the previous day's pullback from the monthly peak as traders assess Trump's State of the Union address. Trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion.

Hyperliquid registers mild gains following CoinShares' ETP launch

Hyperliquid registered a 3% gain on Tuesday after CoinShares announced the launch of its Physical Hyperliquid Staking exchange-traded product, offering investors exposure to the token's price and staking yields.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.