GBP/USD outlook: Cable regained traction and attacks pivotal barriers ahead of UK PMI data

Slobodan Drvenica Windsor Brokers

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

1. R3 1.2837
2. R2 1.2792
3. R1 1.2739
PP 1.2694
1. S1 1.2641
2. S2 1.2596
3. S3 1.2543

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 down but not out as key $5,140 support holds

Gold consolidates the advance to monthly top of $5,250 in Tuesday’s Asian trades. The US Dollar finds demand as liquidity returns and risk sentiment recovers, despite US tariffs uncertainty. Gold defends 61.8% Fibo resistance at $5,142 amid the pullback, daily RSI remains bullish.

Top Crypto Losers: BCH, HYPE, PUMP extend losses as Bitcoin drops below $64,000

Altcoins, including Bitcoin Cash, Hyperliquid, and Pump.fun, are leading losses over the last 24 hours as Bitcoin falls below $64,000 on Tuesday. The technical outlook for BCH, HYPE, and PUMP flags downside risk amid broader market selling.

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.