GBP/USD Price Analysis: Struggles to find acceptance above 1.2100 amid reviving USD demand

GBP/USD scales higher for the second straight day, albeit lacks follow-through buying.
The risk-off mood drives some haven flows towards the USD and caps gains for the pair.
The technical setup supports prospects for an eventual break below the 200-day SMA.

Haresh Menghani FXStreet

The GBP/USD pair builds on the overnight bounce from the 1.1960 area, or over a one-month low and gains some positive traction for the second successive day on Wednesday. Spot prices, however, struggle to capitalize on the move or find acceptance above the 1.2100 mark and retreat around 35 pips from the daily top. The pair is currently placed around the 1.2075 region, still up over 0.30% for the day.

The prevalent risk-off environment - as depicted by a generally weaker tone around the equity markets - assists the safe-haven US Dollar to recover a major part of its intraday losses. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. That said, the prospects for an imminent pause in the Fed's rate-hiking cycle hold back the USD bulls from placing aggressive bets and remain supportive of the bid tone surrounding the major.

Looking at the broader picture, the recent repeated failures near the 1.2450 supply zone constitute the formation of a bearish multiple-top pattern on the daily chart. That said, the emergence of some buying near a technically significant 200-day SMA warrants some caution for bearish traders. This makes it prudent to wait for strong follow-through selling below the overnight swing low, around the 1.1960 zone before positioning for a further depreciating move.

With oscillators on the daily chart holding in the negative territory, the GBP/USD pair might then turn vulnerable to accelerate the fall towards the 1.1900 round figure. The downward trajectory could get extended further towards testing the YTD low, around the 1.1840 region touched on January 6, en route to the 100-day SMA, currently near the 1.1815-1.1810 area.

On the flip side, any meaningful rally beyond the 1.2100 mark is likely to confront stiff resistance ahead of the 1.2200 round figure. The latter coincides with the 100-day SMA, which if cleared might negate the bearish outlook and prompt some short-covering. The GBP/USD pair could then climb to the 1.2235-1.2280 barrier before aiming to reclaim the 1.2300 mark.

GBP/USD daily chart

Key levels to watch

GBP/USD

Overview
Today last price	1.2077
Today Daily Change	0.0037
Today Daily Change %	0.31
Today daily open	1.204

Trends
Daily SMA20	1.2275
Daily SMA50	1.2193
Daily SMA100	1.1816
Daily SMA200	1.1951

Levels
Previous Daily High	1.2096
Previous Daily Low	1.1961
Previous Weekly High	1.2418
Previous Weekly Low	1.205
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.2044
Daily Fibonacci 61.8%	1.2013
Daily Pivot Point S1	1.1969
Daily Pivot Point S2	1.1898
Daily Pivot Point S3	1.1834
Daily Pivot Point R1	1.2103
Daily Pivot Point R2	1.2167
Daily Pivot Point R3	1.2238

Author

Haresh Menghani

FXStreet

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

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.