GBP/USD Price Analysis: Remains calm near 1.2770 ahead of UK, US PMI data

GBP/USD stays tranquil as it anticipates the upcoming PMI data from both countries.
A break above the 1.2800 could lead the pair to approach August’s high at 1.2841.
A breach below the 1.2700 could push the pair towards the 14-day EMA at 1.2624.

Akhtar Faruqui FXStreet

GBP/USD grapples to continue its winning streak that began on Monday, trading around 1.2770 during the Asian hours on Friday. The GBP/USD pair receives a boost from the hawkish stance of the Bank of England (BoE).

As anticipated, the BoE opted to maintain the interest rates at 5.25% during Thursday's decision. BoE Governor Andrew Bailey remarked that there is still some distance to cover before inflation aligns with its target, contributing to the overall hawkish sentiment. Investors await Purchasing Managers Index (PMI) data from both nations on Friday.

Additionally, the technical indicators for the GBP/USD pair are signaling a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, suggesting a bullish momentum in favor of the pair.

Additionally, the Moving Average Convergence Divergence (MACD) line, positioned above the centerline and the signal line, implies a strong momentum in the GBP/USD pair.

The GBP/USD could face a challenge around the psychological region at the 1.2800 level. A firm breakthrough above the latter could support the pair to approach August’s high at 1.2841 level before the major level at 1.2850.

Looking at the downside, the psychological level at 1.2700 appears to be a crucial support region. A breach below this level might propel the GBP/USD pair towards the 14-day Exponential Moving Average (EMA) at 1.2624, followed by the 23.6% Fibonacci retracement at 1.2610.

If the pair extends its decline beyond this point, it could find itself navigating around the 38.2% Fibonacci retracement, marked at 1.2500.

GBP/USD: Daily Chart

GBP/USD: More technical levels to watch

Overview
Today last price	1.2769
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.2772

Trends
Daily SMA20	1.2597
Daily SMA50	1.2379
Daily SMA100	1.2454
Daily SMA200	1.25

Levels
Previous Daily High	1.2794
Previous Daily Low	1.2612
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2725
Daily Fibonacci 61.8%	1.2682
Daily Pivot Point S1	1.2658
Daily Pivot Point S2	1.2544
Daily Pivot Point S3	1.2476
Daily Pivot Point R1	1.284
Daily Pivot Point R2	1.2908
Daily Pivot Point R3	1.3022

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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