GBP/USD
Cable bounced above 1.2700 mark on Wednesday morning, keeping bullish bias after Tuesday’s close in red and indecision signal from strong rejection on both sides.
Fresh strength cracks again pivotal barriers at 1.2710/20 (converged 10/20DMA’s/Fibo 61.8% of 1.3141/1.2037) which so far resisted several attacks.
Close above these levels is needed to signal bullish continuation of recovery leg from 1.2596 (Jan 17 low) and expose target at 1.2785 (Jan 12 lower top) which guards key barrier at 1.2875 (Dec 28 peak and six-month high).
Technical studies are bullishly aligned on daily chart (14-d momentum is holding in the positive territory and RSI rose from neutral zone) and support the action for now.
Tuesday’s spike low (1.2649) marks initial support, followed by more significant rising 55DMA/weekly cloud top (1.2610/00).
Markets focus on release of UK January flash PMI’s (Manufacturing 46.7 f/c vs 46.2 prev/Services 53.2 f/c vs 53.4 prev) for fresh direction signals.
Res: 1.2747; 1.2785; 1.2827; 1.2844.
Sup: 1.2649; 1.2610; 1.2589; 1.2551.
Interested in GBP/USD technicals? Check out the key levels
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.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
![EUR/USD stays in positive territory above 1.0850 after US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
![GBP/USD stabilizes above 1.2850 as risk mood improves](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
![Gold rebounds above $2,380 as US yields stretch lower](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-gm187363896-28836378_XtraSmall.jpg)
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
![Avalanche price sets for a rally following retest of key support level](https://editorial.fxstreet.com/images/Avalanche/Avalanche_XtraSmall.jpg)
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
![The election, Trump's Dollar policy, and the future of the Yen](https://editorial.fxstreet.com/images/Macroeconomics/Events/US%20Elections/Donald_Trump_closeup_XtraSmall.jpg)
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.