GBP/USD outlook: Near-term action lacks clearer direction signal but overall still bullishly aligned

GBP/USD

Cable is holding around 1.2700 mark in early Wednesday, following a triple upside rejection at 1.2770 zone.

Larger picture shows the pair trading below the middle of the range (1.2610/1.2827) which extends into fourth consecutive week and capped by 200WMA (1.2837).

Daily studies are mixed as MA’s remain bullishly aligned, but momentum is turning negative, lacking clearer direction signal.

Daily Tenkan-sen (1.2720) marks the first upper trigger, followed by pivots at 1.2770 zone, break of which to firm the structure and expose key barriers (range top / 200WMA).

First support lays at 1.2663 (daily Kijun-sen), guarding lower pivots at 1.2610/1.2598 (range floor / weekly cloud top).

BOE Governor Bailey’s speech to the Treasury Committee is the top event for sterling today, with focus on release of US inflation report on Thursday, which could provide stronger signals.

Res: 1.2720; 1.2770; 1.2793; 1.2827.
Sup: 1.2686; 1.2663; 1.2598; 1.2526.

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