• GBP/USD stages a goodish intraday recovery from its lowest level since 1985.
  • A modest USD pullback from a new two-decade high offer supports to the pair.
  • The market focus remains glued to the crucial BoE monetary policy decision.

The GBP/USD pair attracts some buying in the vicinity of the 1.1200 mark and rebounds from its lowest level since 1985 touched during the early European session this Thursday. The pair is currently trading near the daily high, just below the 1.1300 mark, though any meaningful recovery seems elusive as the focus remains on the crucial Bank of England policy decision.

Heading into the key central bank event risk, some repositioning trade turns out to be a key factor offering support to the GBP/USD pair. Apart from this, the intraday uptick could further be attributed to some cross-driven strength stemming from a dovish Bank of Japan-inspired rally in the GBP/JPY cross. Furthermore, a modest US dollar pullback from a new 20-year peak remains supportive of the modest recovery move.

The USD downtick, meanwhile, lacks any obvious fundamental catalyst and is likely to remain limited amid a more hawkish stance adopted by the Federal Reserve. In fact, the Fed raised interest rates by another 75 bps on Wednesday and signalled more aggressive rate increases at its upcoming meetings. This, along with the prevalent risk-off mood, should act as a tailwind for the safe-haven buck and cap the GBP/USD pair.

Traders might also prefer to move to the sidelines and wait for the BoE monetary policy update before placing aggressive bets. The UK central bank is expected to step up its efforts to curb inflation and deliver a supersized 75 bps rate increase on Thursday. Investors will also look to the accompanying policy statement for clues about future rate hikes amid growing recession risks, which will influence the British pound.

Technical levels to watch

GBP/USD

Overview
Today last price 1.1296
Today Daily Change 0.0029
Today Daily Change % 0.26
Today daily open 1.1267
 
Trends
Daily SMA20 1.1548
Daily SMA50 1.1839
Daily SMA100 1.2071
Daily SMA200 1.2676
 
Levels
Previous Daily High 1.1385
Previous Daily Low 1.1237
Previous Weekly High 1.1738
Previous Weekly Low 1.1351
Previous Monthly High 1.2294
Previous Monthly Low 1.1599
Daily Fibonacci 38.2% 1.1294
Daily Fibonacci 61.8% 1.1328
Daily Pivot Point S1 1.1208
Daily Pivot Point S2 1.1149
Daily Pivot Point S3 1.106
Daily Pivot Point R1 1.1355
Daily Pivot Point R2 1.1444
Daily Pivot Point R3 1.1503

 

 

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