GBP/USD Price Analysis: Cable turns defensive above 1.2600 on BoE “Super Thursday”

  • GBP/USD seesaws around the highest levels since April 2022, prods two-day uptrend.
  • Clear upside break of five-week-old hurdle, firmer RSI (14) line keeps buyers hopeful.
  • Weekly descending resistance line, bearish MACD signals and pre-BoE caution challenge Cable buyers.
  • Bulls seek 1.2700 breakout to keep the reins; downside break of 1.2600 can lure intraday sellers.

GBP/USD bulls take a breather around 1.2630 amid the early hours of the Bank of England (BoE) inspired “Super Thursday”. That said, the Cable pair rose to a 13-month high the previous day while bouncing off the resistance-turned-support line stretched from early April.

The Pound Sterling’s recovery from the previous resistance line also gained support from the firmer RSI (14) line, not overbought. However, the bearish MACD signals and a downward-sloping resistance line from Monday, close to 1.2635 by the press time, prod the Cable buyers.

Even if the GBP/USD bulls manage to cross the 1.2635 trend line resistance, the latest high of around 1.2680 and the 1.2700 round figure may challenge the quote’s further upside.

Following that, a run-up towards the early April 2022 low surrounding 1.2975 and then to the 1.3000 psychological magnet can’t be ruled out.

On the flip side, a clear downside break of the aforementioned resistance-turned-support near 1.2600 can trigger intraday selling of the GBP/USD pair.

In that case, a three-week-long ascending trend line and the 200-SMA, respectively near 1.2500 and 1.2460, can act as the final defense of the GBP/USD buyers.

Overall, GBP/USD buyers keep the reins despite the latest inaction. However, the upside momentum needs validation from the BoE.

Also read: Bank of England Preview: A risk event for the GBP/USD rally

GBP/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Today last price 1.2627
Today Daily Change 0.0006
Today Daily Change % 0.05%
Today daily open 1.2621
Daily SMA20 1.2497
Daily SMA50 1.2325
Daily SMA100 1.2235
Daily SMA200 1.1954
Previous Daily High 1.264
Previous Daily Low 1.2578
Previous Weekly High 1.2652
Previous Weekly Low 1.2436
Previous Monthly High 1.2584
Previous Monthly Low 1.2275
Daily Fibonacci 38.2% 1.2616
Daily Fibonacci 61.8% 1.2602
Daily Pivot Point S1 1.2586
Daily Pivot Point S2 1.2551
Daily Pivot Point S3 1.2525
Daily Pivot Point R1 1.2648
Daily Pivot Point R2 1.2675
Daily Pivot Point R3 1.2709



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.

Recommended content

Recommended content

Editors’ Picks

EUR/USD declines below 1.0850 as USD recovers

EUR/USD declines below 1.0850 as USD recovers

Following Tuesday's choppy action, EUR/USD came under modest bearish pressure and declined below 1.0850 on Wednesday. The recovery seen in US Treasury bond yields and the cautious market mood support the USD ahead of FOMC Minutes and weigh on the pair.


GBP/USD retreats below 1.2750 following UK CPI-inspired rally

GBP/USD retreats below 1.2750 following UK CPI-inspired rally

GBP/USD retreated below 1.2750 after rallying to a two-month-high above 1.2760 after the data from the UK showed that inflation was higher than expected in April. The US Dollar stays resilient against its rivals on Wednesday as markets turn cautious ahead of the FOMC Minutes. 


Gold drops below $2,400, pressured by rising US yields

Gold drops below $2,400, pressured by rising US yields

Gold price turned south on Wednesday and dropped below $2,400. As markets wait for the Federal Reserve to release the minutes of the April 30-May 1 policy meeting, the benchmark 10-year US Treasury bond yield pushes higher and weighs on XAU/USD.

Gold News

Shiba Inu price buy signal hints 25% upswing on the horizon for SHIB holders Premium

Shiba Inu price buy signal hints 25% upswing on the horizon for SHIB holders

Shiba Inu (SHIB) price continues its struggle above a key hurdle. This development comes as SHIB, an ERC-20 meme coin, reacts to the Ethereum spot ETF approval news.

Read more

Fed Minutes Preview: Markets to focus on comments regarding the inflation outlook

Fed Minutes Preview: Markets to focus on comments regarding the inflation outlook

The Fed left unchanged its monetary policy settings following the April 30-May 1 policy meeting as expected. In its policy statement, the US central bank said that there has recently been a lack of further progress toward the 2% inflation target.

Read more