GBP/USD refreshes daily high, lacks follow-through beyond 1.2100 ahead of the US CPI

GBP/USD gains some positive traction on Wednesday amid subdued USD price action.
Recession fears, the BoE’s gloomy outlook could act as a headwind and cap the major.
Traders might also prefer to move on the sidelines ahead of the crucial US CPI report.

Haresh Menghani FXStreet

The GBP/USD pair edges higher during the first half of the European session on Wednesday and climbs to the 1.2100 neighbourhood or a fresh daily high in the last hour.

The uncertainty over the Fed's rate hike path keeps the USD bulls on the defensive, which, in turn, offers some support to the GBP/USD pair. The New York Fed’s Survey of Consumer Expectations on Monday showed that the inflation outlook fell sharply in July. This might have pushed back speculations for a more aggressive policy tightening by the Fed. The markets, however, are still pricing in around 70% chances for a 75 bps rate hike move at the September FOMC meeting.

Hence, the market focus would remain glued to the latest US consumer inflation figures, due for release later during the early North American session. The crucial US CPI report would be looked upon for fresh clues about the Fed's near-term policy outlook, which will play a key role in influencing the USD price dynamics. In the meantime, the prevalent cautious market mood - amid growing recession fears - could lend support to the safe-haven buck. This, along with the Bank of England's gloomy outlook, should cap the GBP/USD pair.

Even from a technical perspective, the emergence of fresh selling near the 1.2130-1.2140 region since the beginning of this week warrants caution for bullish traders. This further makes it prudent to wait for strong follow-through buying before positioning for any further intraday appreciating move amid absent relevant market-moving economic data from the UK.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2095
Today Daily Change	0.0016
Today Daily Change %	0.13
Today daily open	1.2079

Trends
Daily SMA20	1.205
Daily SMA50	1.2158
Daily SMA100	1.2455
Daily SMA200	1.2933

Levels
Previous Daily High	1.213
Previous Daily Low	1.2063
Previous Weekly High	1.2294
Previous Weekly Low	1.2003
Previous Monthly High	1.2246
Previous Monthly Low	1.176
Daily Fibonacci 38.2%	1.2089
Daily Fibonacci 61.8%	1.2105
Daily Pivot Point S1	1.2051
Daily Pivot Point S2	1.2024
Daily Pivot Point S3	1.1985
Daily Pivot Point R1	1.2118
Daily Pivot Point R2	1.2158
Daily Pivot Point R3	1.2185

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 falls to near 1.1600 due to persistent bearish bias

EUR/USD depreciates after registering modest gains in the previous session, trading around 1.1610 during the Asian hours on Thursday. The technical analysis of the daily chart suggests a persistent bearish bias as the EUR/USD pair remains within the descending channel pattern.

GBP/USD underperforms as UK faces stagflation risks amid Middle East war

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar, during the Asian trade on Thursday. The British currency faces selling pressures amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, a situation in which inflation accelerates with economic growth and employment conditions remaining stagnant.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.