GBP/USD Price Analysis: Trades above 23.6% Fibo at 1.2740, caution ahead of UK PMIs

GBP/USD experiences strength due to the possibility of interest rate hikes by the BoE.
55-day EMA acts as the immediate support aligned to the weekly low at 1.2710.
MACD suggests tepid momentum, reflecting mixed sentiments of GBP/USD traders.

Akhtar Faruqui FXStreet

GBP/USD trades higher around 23.6% Fibonacci retracement at 1.2740 at the time of writing during the Asian session on Wednesday. The pair gets support from the possibility of interest rate hikes in the September meeting by the Bank of England (BoE). Market participants turn cautious ahead of United Kingdom (UK) preliminary S&P Global/CIPS Composite PMIs for August, scheduled to be released later in the day.

The 55-day Exponential Moving Average (EMA) at 1.2728 acts as the immediate support, followed by the weekly low at 1.2710. A firm close below the latter could open the doors for the GBP/USD sellers to navigate the region toward a monthly low at 1.2616.

On the upside, the GBP/USD pair could face a formidable challenge around the 21-day EMA at 1.2755 as it appears to be a key barrier. An upside breakout could lead the pair to explore the region around the 1.2800 psychological level aligned to 38.2% Fibo at 1.2817.

The Moving Average Convergence Divergence (MACD) line suggests tepid momentum, reflecting the mixed sentiment of GBP/USD traders as it stays below the centerline but also shows convergence below the signal line. The 14-day Relative Strength Index (RSI) remains below 50, which suggests a bearish bias in the pair.

GBP/USD: Daily Chart

GBP/USD: additional important levels

Overview
Today last price	1.2749
Today Daily Change	0.0017
Today Daily Change %	0.13
Today daily open	1.2732

Trends
Daily SMA20	1.2754
Daily SMA50	1.2795
Daily SMA100	1.2634
Daily SMA200	1.2388

Levels
Previous Daily High	1.28
Previous Daily Low	1.2718
Previous Weekly High	1.2788
Previous Weekly Low	1.2617
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.275
Daily Fibonacci 61.8%	1.2769
Daily Pivot Point S1	1.27
Daily Pivot Point S2	1.2668
Daily Pivot Point S3	1.2618
Daily Pivot Point R1	1.2782
Daily Pivot Point R2	1.2832
Daily Pivot Point R3	1.2864

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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