GBP/USD Price Analysis: Eyes further recovery above 1.2630 as US debt ceiling talks end without conclusion

GBP/USD is looking to extend its recovery above 1.2630 as US debt ceiling negotiations ended without outcome.
The Pound Sterling will remain in action ahead of the interest rate decision by the BoE.
GBP/USD has rebounded after testing the breakout region near 1.2600 of the Rising Channel pattern.

Sagar Dua FXStreet

The GBP/USD pair is looking to extend its recovery above the immediate resistance of 1.2630 in the early Tokyo session. The Cable is getting some traction as the ending of the US debt ceiling talks without any conclusion has increased uncertainty.

US President Joe Biden cited that Speaker Kevin McCarthy was not ready to approve default off the table. Further discussions will take place on Friday, which gets US inflation back into a major highlight. The US Dollar Index (DXY) extended its recovery to near 101.65 on expectations that the US inflation would remain stubborn further.

Meanwhile, the Pound Sterling will remain in action ahead of the interest rate decision by the Bank of England (BoE), which is scheduled for Thursday. BoE Governor Andrew Bailey is expected to raise interest rates further by 25 basis points (bps) to 4.50%.

GBP/USD has rebounded after testing the breakout region near 1.2600 of the Rising Channel chart pattern formed on a two-hour scale. A confident test of the Rising Channel breakout has stemmed confidence over the strength in the breakout.

The 50-period Exponential Moving Average (EMA) at 1.2600 is providing cushion to the Pound Sterling bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range after a mild correction. An upside break into the 60.00-80.00 range will activate the bullish momentum.

Further recovery above May 09 high at 1.2640 will drive the major toward the round-level resistance at 1.2700 followed by 26 April 2022 high at 1.2772.

On the flip side, a reversal move below May 05 low at 1.2561 will drag the Cable toward April 26 high at 1.2515 and May 02 low at 1.2436.

GBP/USD two-hour chart

GBP/USD

Overview
Today last price	1.2626
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.2619

Trends
Daily SMA20	1.2487
Daily SMA50	1.2313
Daily SMA100	1.223
Daily SMA200	1.1952

Levels
Previous Daily High	1.2669
Previous Daily Low	1.2613
Previous Weekly High	1.2652
Previous Weekly Low	1.2436
Previous Monthly High	1.2584
Previous Monthly Low	1.2275
Daily Fibonacci 38.2%	1.2634
Daily Fibonacci 61.8%	1.2648
Daily Pivot Point S1	1.2598
Daily Pivot Point S2	1.2578
Daily Pivot Point S3	1.2542
Daily Pivot Point R1	1.2654
Daily Pivot Point R2	1.2689
Daily Pivot Point R3	1.271

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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