GBP/USD off highs but consolidating recent gains around 1.2550


  • Pound off highs versus US Dollar, holds to gains versus Euro and Swiss Franc.
  • Cable remains at the strongest since last Friday, far from monthly lows. 

The GBP/USD pair is up for the second day in-a-row, but the bullish momentum eased over the last hours, following US CPI data. It peaked at 1.2570, highest level since last Friday and then pulled back, finding support at 1.2525 (20-hour moving average). During the last hour, it rebounded, and it was trading at 1.2550/55, up 55 pips for the day and more than a hundred pips above yesterday’s low. 

The pair holds to most of the recent gains supported by the weakness around the US Dollar, triggered by the Fed Chair Powell's remarks yesterday that were seen as dovish. Today’s CPI data came in above expectations but did not alter significantly Fed rate cut expectations. “Today’s report is consistent with inflation climbing back toward the FOMC’s target in the coming months. But Fed officials are increasingly concerned about the generalized weakness in inflation that has persisted this expansion”, wrote Wells Fargo analysts, that expected a 25 bps cut at the July meeting. 

Also Cable is being supported by a stronger Pound across the board. It is up versus the euro and also against the Swiss Franc despite warnings from Bank of England Governor Carney. Today he spoke following the release of the Financial Stability Report. They see the UK financial system ready for any kind of Brexit, but Carney warned that a no-deal outcome would have immediate disruptive consequences on the economy. On the political front, the Conservative leadership contest continues, with no significant news. 

From a technical perspective, GBP/USD holds a bullish tone that will likely remain intact in the short-term as long as it stays on top of the 20-hours moving average now at 1.2528. Support levels below are seen at 1.2510 and 1.2495 (daily low). On the upside, 1.2560 is a critical resistance, and a consolidation on top should clear the way to further gains. The next strong resistance is 1.2585/90 (July 4/5 high). 

More levels 
 

GBP/USD

Overview
Today last price 1.2552
Today Daily Change 0.0053
Today Daily Change % 0.42
Today daily open 1.2499
 
Trends
Daily SMA20 1.2617
Daily SMA50 1.2724
Daily SMA100 1.2915
Daily SMA200 1.2897
Levels
Previous Daily High 1.2522
Previous Daily Low 1.2444
Previous Weekly High 1.2706
Previous Weekly Low 1.2481
Previous Monthly High 1.2784
Previous Monthly Low 1.2506
Daily Fibonacci 38.2% 1.2492
Daily Fibonacci 61.8% 1.2474
Daily Pivot Point S1 1.2455
Daily Pivot Point S2 1.241
Daily Pivot Point S3 1.2377
Daily Pivot Point R1 1.2533
Daily Pivot Point R2 1.2567
Daily Pivot Point R3 1.2611

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures