GBP/USD Price Analysis: Remains close to over two-month peak, bullish potential intact

GBP/USD attracts fresh buying on Wednesday amid the underlying USD bearish tone.
Divergent Fed-BoE policy expectations turn out to be another factor lending support.
The technical setup favors bullish traders and supports prospects for additional gains.

Haresh Menghani FXStreet

The GBP/USD pair trades with a mild positive bias around the 1.2775-1.2780 area during the Asian session on Wednesday and remains well within the striking distance of its highest level since March 14 touched the previous day.

The US Dollar (USD) struggles to capitalize on the overnight bounce from over a two-month low in the wake of rising bets for an imminent interest rate cut by the Federal Reserve (Fed) later this year. Furthermore, expectations that the Bank of England (BoE) might keep interest rates at their current level for a little bit longer continue to underpin the British Pound (GBP) and act as a tailwind for the GBP/USD pair.

From a technical perspective, oscillators on the daily chart are holding in the positive territory and are still away from being in the overbought zone. This, in turn, supports prospects for further gains. Some follow-through buying beyond the 1.2800 mark will reaffirm the positive bias and lift the GBP/USD pair to the 1.2855-1.2860 area en route to the 1.2900 neighborhood or the YTD peak touched in March.

On the flip side, the overnight swing low, around the 1.2745-1.2740 region, now seems to protect the immediate downside ahead of the 1.2725-1.2720 area. The latter is followed by the 1.2700 mark, which if broken should pave the way for a slide towards the next relevant support near mid-1.2600s. Spot prices might eventually drop to test sub-1.2600 levels, or the 50-day Simple Moving Average (SMA) support.

GBP/USD daily chart

GBP/USD

Overview
Today last price	1.278
Today Daily Change	0.0009
Today Daily Change %	0.07
Today daily open	1.2771

Trends
Daily SMA20	1.268
Daily SMA50	1.2592
Daily SMA100	1.2636
Daily SMA200	1.2544

Levels
Previous Daily High	1.2818
Previous Daily Low	1.2743
Previous Weekly High	1.2801
Previous Weekly Low	1.2681
Previous Monthly High	1.2801
Previous Monthly Low	1.2446
Daily Fibonacci 38.2%	1.2772
Daily Fibonacci 61.8%	1.2789
Daily Pivot Point S1	1.2736
Daily Pivot Point S2	1.2702
Daily Pivot Point S3	1.2662
Daily Pivot Point R1	1.2811
Daily Pivot Point R2	1.2852
Daily Pivot Point R3	1.2886

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.