GBP/USD Price Analysis: Bounces off 78.6% Fibonacci ratio, focus on 1.2530 support-turned-resistance

GBP/USD licks its wounds at three-month low, consolidating recent losses from 78.6% Fibonacci ratio.
Oversold RSI adds strength to corrective bounce toward previous support line from early August.
200-SMA holds the key to Pound Sterling buyer’s conviction.

Anil Panchal FXStreet

GBP/USD portrays a corrective bounce off a three-month low to around 1.2500 amid early Thursday morning in Asia. In doing so, the Cable pair justifies the oversold RSI conditions, as well as the Pound Sterling’s sustained rebound from the 78.6% Fibonacci retracement of late May to mid-March upside, near 1.2485.

Even so, the bearish MACD signals and the support-turned-resistance stretched from early August guard immediate recovery of the Pound Sterling pair around 1.2530.

Following that, a one-week-old descending resistance line surrounding 1.2580 will precede the 200-SMA hurdle of around 1.2720 to act as the final defense of the GBP/USD pair sellers.

Alternatively, a daily closing beneath the 78.6% Fibonacci retracement level of 1.2485 could quickly drag the GBP/USD pair’s low marked in June around 1.2370, a break of which will direct the Cable bears toward the yearly low marked in March around 1.1800.

That said, the 1.2000 psychological magnet acts as the intermediate halt between 1.2370 and 1.1800.

Overall, the GBP/USD pair is likely to witness a corrective bounce but the room towards the north is long and bumpy.

On a fundamental side, comparatively more hawkish Federal Reserve (Fed) talks than their Bank of England (BoE) counterparts keep exerting downside pressure on the GBP/USD despite the latest corrective bounce.

GBP/USD: Four-hour chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	1.2501
Today Daily Change	-0.0063
Today Daily Change %	-0.50%
Today daily open	1.2564

Trends
Daily SMA20	1.2675
Daily SMA50	1.2771
Daily SMA100	1.2654
Daily SMA200	1.2422

Levels
Previous Daily High	1.2632
Previous Daily Low	1.2528
Previous Weekly High	1.2746
Previous Weekly Low	1.2563
Previous Monthly High	1.2841
Previous Monthly Low	1.2548
Daily Fibonacci 38.2%	1.2568
Daily Fibonacci 61.8%	1.2592
Daily Pivot Point S1	1.2518
Daily Pivot Point S2	1.2471
Daily Pivot Point S3	1.2414
Daily Pivot Point R1	1.2621
Daily Pivot Point R2	1.2678
Daily Pivot Point R3	1.2725

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.