GBP/USD technical analysis: Cable challenging 1.2160 support

GBP is up as the UK Supreme Court said PM Johnson is guilty of suspending the parliament unlawfully.
The level to beat for sellers is the 1.2460 support level.

Flavio Tosti Independent Analyst

GBP/USD daily chart

The Pound is trading is in a bear trend below its 200-day simple moving averages (SMAs). The UK Supreme Court said PM Johnson is guilty of suspending the parliament unlawfully, which made GBP rose across the board in the London session.

GBP/USD four-hour chart

The head-and-shoulders (H&S) structure is keeping the market capped below the 1.2480/1.2510 resistance zone. If broken to the upside, the market can reach 1.2582 swing high. A move beyond that level would negate the H&S.

GBP/USD 30-minute chart

A break of 1.2460 support to the downside would expose 1.2413 key support, according to the Technical Confluences Indicator. If there is a breakdown, it would likely occur after about an hour after the London close.

Additional key levels

GBP/USD

Overview
Today last price	1.2473
Today Daily Change	0.0043
Today Daily Change %	0.35
Today daily open	1.243

Trends
Daily SMA20	1.2328
Daily SMA50	1.2275
Daily SMA100	1.2482
Daily SMA200	1.2738

Levels
Previous Daily High	1.2491
Previous Daily Low	1.2413
Previous Weekly High	1.2583
Previous Weekly Low	1.2393
Previous Monthly High	1.231
Previous Monthly Low	1.2015
Daily Fibonacci 38.2%	1.2443
Daily Fibonacci 61.8%	1.2461
Daily Pivot Point S1	1.2399
Daily Pivot Point S2	1.2367
Daily Pivot Point S3	1.232
Daily Pivot Point R1	1.2477
Daily Pivot Point R2	1.2523
Daily Pivot Point R3	1.2555

Author

Flavio Tosti

Independent Analyst

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.