• GBP/USD climbs to a fresh weekly high on Thursday amid sustained USD selling bias.
  • Dovish remarks by Fed Chair Powell, weaker US bond yields weigh on the greenback.
  • The technical set-up favours bullish traders and supports prospects for further gains.

The GBP/USD pair builds on the previous day's goodish rebound from a one-week low and gains traction for the second successive day on Thursday. The pair maintains its bid tone through the first half of the European session and hits a fresh weekly high, around the 1.2130-1.2135 area in the last hour.

The overnight dovish-sounding remarks by Fed Chair Jerome Powell, along with a further decline in the US Treasury bond yields, keep the US Dollar bulls on the defensive near a multi-month low. Apart from this, a generally positive tone around the equity markets is seen undermining the safe-haven buck and acting as a tailwind for the GBP/USD pair.

From a technical perspective, spot prices have now moved well within the striking distance of the very important 200-day SMA. The said barrier is currently pegged near the 1.2150 area, which if cleared will be seen as a fresh trigger for bullish traders and set the stage for an extension of the near-term appreciating move for the GBP/USD pair.

Given that oscillators on the daily chart are holding in the bullish territory and are still far from being in the overbought zone, the GBP/USD pair might then aim to reclaim the 1.2200 mark. The momentum could further get extended and lift spot prices to the top boundary of over a two-month-old ascending channel, currently around the 1.2300 round figure.

On the flip side, any meaningful pullback below the 1.2100 mark now seems to find decent support near the daily low, around the 1.2045 region. A convincing break below might prompt some technical selling and drag the GBP/USD pair back toward the 1.2000 psychological mark. Some follow-through selling will expose the 1.1945-1.1940 horizontal support.

The latter should act as a strong base for spot prices, which if broken decisively will negate any near-term positive bias and pave the way for a deeper corrective decline. The GBP/USD pair might then turn vulnerable to weaken further below the 1.1900 mark and test the next relevant support near the 1.1860-1.1855 horizontal zone.

GBP/USD daily chart


Key levels to watch


Today last price 1.212
Today Daily Change 0.0064
Today Daily Change % 0.53
Today daily open 1.2056
Daily SMA20 1.1786
Daily SMA50 1.1455
Daily SMA100 1.1647
Daily SMA200 1.2161
Previous Daily High 1.2087
Previous Daily Low 1.19
Previous Weekly High 1.2154
Previous Weekly Low 1.1779
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2016
Daily Fibonacci 61.8% 1.1972
Daily Pivot Point S1 1.1942
Daily Pivot Point S2 1.1828
Daily Pivot Point S3 1.1755
Daily Pivot Point R1 1.2128
Daily Pivot Point R2 1.2201
Daily Pivot Point R3 1.2315



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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD retreats to 1.0850 area as US Dollar rebounds

EUR/USD retreats to 1.0850 area as US Dollar rebounds

EUR/USD has extended its slide toward 1.0850 in the American session. Profit-taking ahead of the weekend and the negative shift witnessed in risk sentiment seems to be helping the US Dollar gather strength against its rivals, weighing on the pair.


GBP/USD trades on the back foot below 1.2400

GBP/USD trades on the back foot below 1.2400

GBP/USD is having a difficult time gathering recovery momentum and trading in negative territory below 1.2400 on Friday. Although the data from the US showed that PCE inflation continued to soften in December, the US Dollar holds its ground heading into the weekend.


Gold trapped bulls into the Fed and NFP Premium

Gold trapped bulls into the Fed and NFP

Gold prices steadied, with gains capped by the stronger dollar and analysts at TD Securities argued that the yellow metal need only close above the $1,935 range to catalyze a marginal buying program, whereas a close below the $1,890 mark is required to spark a trend follower selling flow.

Gold News

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera (HBAR) price has been shooting for the starts but looks to be dropping like a stone now. Just like Icarus, who flew too close to the sun, this time, Hedera came just not close enough to the projected price target for this rally.

Read more

Central bank fest as dollar continues its decline

Central bank fest as dollar continues its decline

The focus this week is the Federal Reserve meeting, the Bank of England rate decision and Monetary Policy Report and the ECB meeting. This troika of central bank decisions could set the tone for the rest of the year: the Federal Reserve passing the baton of global leader when it comes to tightening monetary policy.

Read more