GBP/USD Price Analysis: Needs to conquer 1.2300 to deliver more gains ahead


  • The Cable is facing barricades while attempting to break above 1.2300.
  • Advancing 20-and 50-EMAs signifies more upside ahead.
  • A range shift by the RSI (14) into the 60.00-80.00 area will strengthen Pound Sterling.

The GBP/USD pair has witnessed marginal selling pressure after failing to cross the 1.2300 hurdle in the early Tokyo session. The Cable recovered sharply on Friday after a sheer correction to near 1.2150 on the release of robust United States Employment data.

Meanwhile, the risk impulse is extremely bullish as the Federal Reserve (Fed) is still looking to trim the interest rate hike pace. The US Dollar Index (DXY) is declining toward Friday’s low of around 104.40.

On an hourly scale, Cable witnessed a significant buying interest after dropping to near November 24 high of around 1.2150 on Friday. The recovery was full of strength and it pushed Cable near the critical resistance of 1.2300.

Advancing 20-and 50-period Exponential Moving Averages (EMAs) at 1.2260 and 1.2210 add to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has recovered after dropping to near 40.00. A break inside the bullish range of 60.00-80.00 would trigger a bullish momentum.

For further upside, a decisive break above Friday’s high at 1.2311 will drive Cable toward June 16 high at 1.2406, followed by the round-level resistance at 1.2500.

Alternatively, a decisive drop below Wednesday’s low at 1.1900 will drag the Cable toward November 22 low at 1.1825. A slippage below the latter will drag the pair to near November 21 low at 1.1779.

GBP/USD hourly chart

GBP/USD

Overview
Today last price 1.2282
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.2283
 
Trends
Daily SMA20 1.1885
Daily SMA50 1.1503
Daily SMA100 1.1656
Daily SMA200 1.2149
 
Levels
Previous Daily High 1.23
Previous Daily Low 1.2134
Previous Weekly High 1.2311
Previous Weekly Low 1.19
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2237
Daily Fibonacci 61.8% 1.2198
Daily Pivot Point S1 1.2178
Daily Pivot Point S2 1.2073
Daily Pivot Point S3 1.2012
Daily Pivot Point R1 1.2344
Daily Pivot Point R2 1.2405
Daily Pivot Point R3 1.251

 

 

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 remains pressured below 1.0800, US data eyed

EUR/USD remains pressured below 1.0800, US data eyed

EUR/USD is trading under pressure below 1.0800 in European trading on Friday. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Fed rate cut ahead of the US preliminary Consumer Sentiment data for November.

EUR/USD News
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD edges lower toward 1.2950 in the European session on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders look to BoE-speak, US data for fresh incentives. 

GBP/USD News
Gold price seems vulnerable while below $2,700 amid stronger USD, positive risk tone

Gold price seems vulnerable while below $2,700 amid stronger USD, positive risk tone

Gold price drops to the $2,680 area during the first half of the European session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.

Gold News
Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures