GBP/USD Price Analysis: The next upside barrier is seen at 1.2580

GBP/USD attracts some sellers around 1.2525 in Wednesday’s early European session.
The pair holds above the 50- and 100-hour EMA with an upward slope; the RSI indicator stands in bullish territory above 50.
1.2580 acts as an immediate resistance level for GBP/USD; the initial support level is located at 1.2456.

Lallalit Srijandorn FXStreet

The GBP/USD pair snaps the three-day winning streak during the early European session on Wednesday. The downtick of the major pair is backed by renewed US dollar demand. At the press time, GBP/USD is losing 0.09% on the day to trade at 1.2525.

On Monday, the Bank of England (BoE) Governor Andrew Bailey said that it was too early to think about rate cuts and borrowing costs might have to rise again if inflation proved to be more persistent than estimated. Bailey further stated that the conflict in the Gaza Strip has increased the likelihood that inflation will rise again.

From the technical perspective, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope on the four-hour chart, suggesting the path of least resistance is to the upside. Furthermore, the Relative Strength Index (RSI) holds in the bullish territory above 50, indicating the further upside looks favorable.

The upper boundary of the Bollinger Band at 1.2580 acts as an immediate resistance level for the major pair. The next upside barrier is seen near a high of September 4 at 1.2642. The additional upside filter to watch is a high of September 1 at 1.2713, en route to a high of August 30 at 1.2746.

On the downside, the initial support level for GBP/USD is located near a high of November 16 at 1.2456. Further south, the next downside target is seen at the 50-hour EMA. The key contention level will emerge at 1.2400, portraying the confluence of the lower limit of the Bollinger Band and a psychological round mark. A breach of the level will see a drop to the 100-hour EMA at 1.2357.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price	1.2526
Today Daily Change	-0.0010
Today Daily Change %	-0.08
Today daily open	1.2536

Trends
Daily SMA20	1.2294
Daily SMA50	1.2257
Daily SMA100	1.2505
Daily SMA200	1.2448

Levels
Previous Daily High	1.2559
Previous Daily Low	1.2501
Previous Weekly High	1.2506
Previous Weekly Low	1.2213
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2537
Daily Fibonacci 61.8%	1.2523
Daily Pivot Point S1	1.2505
Daily Pivot Point S2	1.2474
Daily Pivot Point S3	1.2446
Daily Pivot Point R1	1.2563
Daily Pivot Point R2	1.2591
Daily Pivot Point R3	1.2622

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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