Cable edges higher on Wednesday, looking for another attempt at daily cloud top (1.2944) after the action in past two days was capped by rising cloud top.
The pair holds in green for the third straight day, with series of higher lows pointing to bullish near-term bias.
UK inflation fell to the lowest in almost five years in August, but release had a minor impact on sterling, inflated by weaker dollar and signals that the government might have a way through parliamentary labyrinth for PM Johnson’s bill which breaches existing Brexit agreement.
Daily techs show 14-d momentum rising from deep negative territory and RSI/Stochastic also heading north, but initial bullish signal could be expected only on firm break of daily cloud top, while rise above next pivotal barriers at 1.3000/37 (psychological / Fibo 38.2% of 1.3482/1.2762) is required to generate reversal signal.
Fed policy statement and remarks from chief Powell are key events today and expected to provide fresh direction signals.
The dollar may come under fresh pressure on dovish stance from Fed (expected scenario) on extension of ultra-accommodative policy and promise for further stimulus that would further boost pound’s recovery

Res: 1.2944; 1.3000; 1.3037; 1.3053
Sup: 1.2900; 1.2874; 1.2814; 1.2762


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

    1. R3 1.305
    2. R2 1.2988
    3. R1 1.2939
  1. PP 1.2877
    1. S1 1.2827
    2. S2 1.2765
    3. S3 1.2716


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 Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.


Gold: Finally some rest bite as XAU/USD holds at $1865 per ounce

It has not been the best week for the gold bugs as the yellow metal has fallen 4.36% since Monday. At the end of the week, the price has started to consolidate at the USD 1865 per ounce area. 

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News

Forex Majors