GBP/USD advances to multi-week high, focus remains on US PPI and FOMC minutes


  • GBP/USD scales higher for the sixth successive day and climbs to a near three-week high.
  • Retreating US bond yields and a positive risk tone undermine the USD and lend support.
  • Traders now look to the US PPI and FOMC meeting minutes for some meaningful impetus.

The GBP/USD pair gains some positive traction for the sixth successive day on Wednesday and climbs to a near three-week high during the Asian session. Spot prices currently trade just below the 1.2300 round-figure mark and remain well supported by the prevalent selling bias surrounding the US Dollar (USD).

The recent dovish remarks by several Federal Reserve (Fed) officials forced investors to scale back their bets for more aggressive policy tightening by the US central bank and continue to drag the US Treasury bond yields lower. This, in turn, undermines the Greenback and acts as a tailwind for the GBP/USD pair. In fact, Atlanta Fed President Raphael Bostic said on Tuesday that the US central bank does not need to raise interest rates any further and that he sees no recession ahead.

Apart from this, the risk-on mood turns out to be another factor weighing on the safe-haven buck and lending additional support to the GBP/USD pair. Despite escalating geopolitical tensions in the Middle East, diminishing odds for further rate hikes by the Fed continue to boost investors' appetite for riskier assets. This is evident from a generally positive tone around the equity markets and is seen driving flows away from traditional safe-haven currencies, including the greenback.

That said, the markets are still pricing in the possibility of at least one more Fed rate hike move by the end of this year. This is holding back traders from placing aggressive bearish bets around the USD. Apart from this, firming expectations that the Bank of England (BoE) will maintain the status quo in November might contribute to capping the GBP/USD pair. In fact, the BoE surprisingly paused its rate-hiking cycle in September and provided little hints of its intention to raise rates.

This makes it prudent to wait for strong follow-through buying before positioning for an extension of the GBP/USD pair's recent recovery move from the 1.2035 area, or its lowest level since March touched last week. Market participants now look forward to the US Producer Price Index (PPI) and the FOMC meeting minutes for some meaningful impetus later during the North American session. The focus will then shift to Thursday's release of the latest US consumer inflation figures.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2298
Today Daily Change 0.0012
Today Daily Change % 0.10
Today daily open 1.2286
 
Trends
Daily SMA20 1.2255
Daily SMA50 1.2495
Daily SMA100 1.2604
Daily SMA200 1.2441
 
Levels
Previous Daily High 1.2292
Previous Daily Low 1.2212
Previous Weekly High 1.2262
Previous Weekly Low 1.2037
Previous Monthly High 1.2713
Previous Monthly Low 1.2111
Daily Fibonacci 38.2% 1.2261
Daily Fibonacci 61.8% 1.2242
Daily Pivot Point S1 1.2235
Daily Pivot Point S2 1.2184
Daily Pivot Point S3 1.2155
Daily Pivot Point R1 1.2315
Daily Pivot Point R2 1.2343
Daily Pivot Point R3 1.2395

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD accelerates losses to 1.0930 on stronger Dollar

EUR/USD accelerates losses to 1.0930 on stronger Dollar

The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

EUR/USD News
GBP/USD plummets to four-week lows near 1.2850

GBP/USD plummets to four-week lows near 1.2850

The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

GBP/USD News
Gold trades on the back foot, flirts with $3,000

Gold trades on the back foot, flirts with $3,000

Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Gold News
Can Maker break $1,450 hurdle as whales launch buying spree?

Can Maker break $1,450 hurdle as whales launch buying spree?

Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025