GBP/USD recovery attempts remain capped below 1.2600 so far


 

 

  • Pound’s recovery attempts are likely to meet strong resistance at 1.2600.
  • The weak ADP report failed to hit the US Dollar.
  • The pair is under pressure after confirming a double-top at 1.2730.


The Pound’s is trying to regain some ground in early European session after bouncing from session lows at 1.2540 although 1.2600 seems a tough resistance area.

Sterling’s bears remain in control after the pair accelerated its reversal from three-month highs above 1.2700 on Thursday. The sourer market sentiment on heightened fears about a global economic slowdown in 2024 is underpinning support on the safe-haven Dollar.

The weaker US ADP employment report failed to dampen confidence in the USD, which is on track to a significant recovery this week, as bets of monetary easing extend to most of the world's major central banks. Investors are now looking at Friday's Nonfarm Payrolls report for more cues into the US labour market.

In the UK BoE Governour Bailey maintained the need to keep interest rates at the current levels for some time although he mentioned the risks for financial stability and noted the challenges to the global economy from the uncertainty about China.

The technical picture is bearish. Below 1.2600, the pair has confirmed a double-top at 1.2730 increasing negative pressure towards 1.2517 and 1.2460.
 

Technical levels to watch

GBP/USD

Overview
Today last price 1.2566
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.2556
 
Trends
Daily SMA20 1.2516
Daily SMA50 1.2324
Daily SMA100 1.2469
Daily SMA200 1.248
 
Levels
Previous Daily High 1.2614
Previous Daily Low 1.2552
Previous Weekly High 1.2733
Previous Weekly Low 1.2591
Previous Monthly High 1.2733
Previous Monthly Low 1.2096
Daily Fibonacci 38.2% 1.2576
Daily Fibonacci 61.8% 1.259
Daily Pivot Point S1 1.2534
Daily Pivot Point S2 1.2512
Daily Pivot Point S3 1.2472
Daily Pivot Point R1 1.2596
Daily Pivot Point R2 1.2636
Daily Pivot Point R3 1.2658

 

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD drops to 1.2400 area after BoE cut, US data

GBP/USD drops to 1.2400 area after BoE cut, US data

GBP/USD trades deep in negative territory near 1.2400 on Thursday. Although the disappointing US data help the pair limit its losses, it struggles to gather recovery momentum following the Bank of England's decision to cut the policy rate by 25 bps.

GBP/USD News
EUR/USD stays below 1.0400 despite weak US data

EUR/USD stays below 1.0400 despite weak US data

EUR/USD stays on the back foot below 1.0400 in the second half of the day on Thursday. The cautious market stance supports the USD and doesn't allow the pair to gain traction, even after the data from the US showed that weekly Initial Jobless Claims rose to 219,000.

EUR/USD News
Gold alternates gains with losses below $2,870

Gold alternates gains with losses below $2,870

Gold keeps its inconclusive price action below the $2,870 region per ounce troy on Thursday against the backdrop of a marked recovery in the Greenback and a mild rebound in US yields across the curve. Investors refrain from taking large positions ahead of Friday's key US jobs data.

Gold News
The BoE: A meeting of contradictions

The BoE: A meeting of contradictions

The Bank of England delivered a rate cut as expected on Thursday, however, it was the commentary that followed along with the BOE’s updated forecasts for growth and inflation that shocked investors, and the initial reaction to the report was dovish.

Read more
Top Trumps: The global economy’s House of Cards

Top Trumps: The global economy’s House of Cards

The year has barely started and we are learning the hard way what Donald Trump’s second term in office means for markets, analysts and global policymakers. It's like living through an episode of the political thriller, House of Cards.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025