GBP/USD technical analysis: Head and shoulder pattern is driving the Cable sharply below 1.3000 figure

Flavio Tosti Independent Analyst

GBP/USD daily chart

GBP/USD is trading down sharply as bears break the 1.3000 figure.
GBP/USD is trading just near its 200 SMA at 1.2958 level.

GBP/USD 4-hour chart

Cable formed a head and shoulder pattern sending the currency pair below the 1.3000 figure.

GBP/USD 30-minute chart

The picture worsened considerably as the market is approaching 1.2940 support. A breach below that level can see the 1.2900 figure on the cards for bears.
Resistance is seen at 1.2990 and 1.3020/50 levels.

Additional key levels

GBP/USD

Overview
Today last price	1.2955
Today Daily Change	-0.0045
Today Daily Change %	-0.35
Today daily open	1.3

Trends
Daily SMA20	1.301
Daily SMA50	1.309
Daily SMA100	1.3008
Daily SMA200	1.2959

Levels
Previous Daily High	1.3048
Previous Daily Low	1.2991
Previous Weekly High	1.3171
Previous Weekly Low	1.2967
Previous Monthly High	1.3196
Previous Monthly Low	1.2865
Daily Fibonacci 38.2%	1.3013
Daily Fibonacci 61.8%	1.3027
Daily Pivot Point S1	1.2978
Daily Pivot Point S2	1.2956
Daily Pivot Point S3	1.292
Daily Pivot Point R1	1.3035
Daily Pivot Point R2	1.3071
Daily Pivot Point R3	1.3093

Author

Flavio Tosti

Independent Analyst

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold reclaims $5,000 and above

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs just above the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.