GBP/USD Price Analysis: Ascending channel support, around 1.2135 holds the key for bulls

GBP/USD gains some positive traction on Wednesday, though lacks follow-through.
The risk-on impulse is undermining the safe-haven USD and offering some support.
Rising US bond yields help limit the USD losses and keep a lid on any further gains.
Investors also seem reluctant ahead of the BoE on Thursday and the NFP on Friday.

Haresh Menghani FXStreet

The GBP/USD pair defends support marked by the lower end of a nearly three-week-old ascending channel and attracts some buying near the 1.2135 region on Wednesday.

The risk-on impulse - as depicted by a generally positive tone around the equity markets - undermines the safe-haven US dollar and offers some support to the GBP/USD pair. That said, a further rise in the US Treasury bond yields, bolstered by hawkish comments by several Fed officials on Tuesday, helps limit losses for the greenback.

The GBP/USD pair, meanwhile, struggles to find acceptance above the 1.2200 round figure and remains at the mercy of the USD price dynamics. Traders now look forward to the US ISM Services PMI for a fresh impetus, though the focus would be on the Bank of England meeting on Thursday and the US monthly jobs report (NFP) on Friday.

In the meantime, the ascending trend-channel support, near the 1.2135 area, might continue to protect the immediate downside. A convincing break below could prompt some technical selling and drag the GBP/USD pair further towards testing the 1.2100 mark. This is closely followed by the 200-period SMA on the 4-hour chart.

Some follow-through selling below the latter would be seen as a fresh trigger for bearish traders and make the GBP/USD pair vulnerable. The downfall could then accelerate towards the 1.2030-1.2025 intermediate support en-route the 1.2000 psychological mark and the next relevant support near the 1.1975-1.1970 horizontal zone.

On the flip side, the 1.2200 mark now seems to act as an immediate hurdle, above which the GBP/USD could climb back to the 1.2250 resistance. Sustained strength beyond the latter should pave the way for an extension of the recent recovery from the lowest level since March 2020 and allow spot prices to aim to conquer the 1.2300 level.

GBP/USD 4-hour chart

Key levels to watch

GBP/USD

Overview
Today last price	1.2164
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.2173

Trends
Daily SMA20	1.2012
Daily SMA50	1.2209
Daily SMA100	1.2509
Daily SMA200	1.2973

Levels
Previous Daily High	1.228
Previous Daily Low	1.2159
Previous Weekly High	1.2246
Previous Weekly Low	1.196
Previous Monthly High	1.2246
Previous Monthly Low	1.176
Daily Fibonacci 38.2%	1.2205
Daily Fibonacci 61.8%	1.2234
Daily Pivot Point S1	1.2128
Daily Pivot Point S2	1.2084
Daily Pivot Point S3	1.2008
Daily Pivot Point R1	1.2248
Daily Pivot Point R2	1.2324
Daily Pivot Point R3	1.2369

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.