- GBP/USD has found acceptance above the 100-day MA, having defended a key Fibonacci support on Friday.
- The pair could challenge recent highs if the Fed reaffirms gradual rate hike path.
The GBP/USD technicals have regained bullish bias ahead of the all-important Federal Reserve rate decision.
The currency pair closed above the 100-day moving average (MA) hurdle yesterday, having defended 1.3055 (38.2% Fib R of 1.2662/1.3299) on Friday. Further, the short-term MAs (10-day and 5-day) are trending north, indicating a bullish setup. As a result, the stage looks set for a re-test of the recent high of 1.3299.
However, the bullish technical setup will likely fail if the Fed signals low tolerance for above-target inflation and willingness to push rates above the neutral level of 2.87 percent.
On the other hand, the GBP/USD may pick up a strong bid if the Fed reaffirms gradual rate hike path despite rising oil prices and sounds cautious about the impact that trade tensions could have on wages and capital spending.
The US central bank is set to raise rates by 25 basis points today and markets have already priced in two more rate hikes this year. At press time, the spot is trading at 1.3180.
GBP/USD Technical Levels
Resistance: 1.3194 (resistance of previous day's high on the hourly chart), 1.3213 (July 26 high), 1.3299 (Sept. 20 high)
Support: 1.3143 (100-day MA), 1.3055 (38.2% Fib R of 1.2662/1.3299), .30 (psychological level)
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.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, back near 1.1330
EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.
GBP/USD eases from tops, revisits the 1.3500 zone
GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.
Gold keeps the bullish tone near $3,350
Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.
Apple stock sinks below $200 after Trump threatens more tariffs Premium
Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.
Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.
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.