GBP/USD ticks up above 1.2550 as US Dollar recovery stalls

The pound picks up on Monday with the USD losing steam.
Cooling hopes of Fed cuts are likely to keep US Dollar losses limited.
GBP/USD is expected to meet resistance at 1.2600.

Guillermo Alcala FXStreet

The Sterling is trimming some losses on Monday’s European session, with the US Dollar losing upside momentum. The broader bearish trend, however, remains active, with investors cautious ahead of key UK data and major central banks’ decisions.

US employment data has boosted the US Dollar

US employment data boosted the Dollar last Friday, with the Nonfarm payrolls beating expectations and wages growing too fast to allow the Federal Reserve to start cutting rates in the coming months. This is likely to cushion US Dollar declines over the coming sessions.

In the calendar, Tuesday’s UK Employment data and the US CPI will attract the market focus ahead of the all-important Fed monetary policy meeting on Wednesday.

The US central bank is expected to leave its benchmark rate on hold. The main attraction of the event will be the MPC members’ interest rate projections and Powell’s press conference for hints about any dovish turn that would hurt the US Dollar.

On Thursday, the BoE will keep rates on hold, with BoE Bailey expected to give more info about the bank’s next steps.

GBP/USD rebound to meet resistance at 1.2600

The technical picture shows the pair gathering bullish strength, yet still below 1.2600 resistance, which would negate the near-term corrective mood, and expose 1.2650 ahead of the mentioned 1.2730.

On the downside, supports are Friadau’s low at 1.2500 and November 22 low at 1.2450.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2572
Today Daily Change	0.0024
Today Daily Change %	0.19
Today daily open	1.2548

Trends
Daily SMA20	1.255
Daily SMA50	1.2339
Daily SMA100	1.2464
Daily SMA200	1.2486

Levels
Previous Daily High	1.2602
Previous Daily Low	1.2502
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.254
Daily Fibonacci 61.8%	1.2564
Daily Pivot Point S1	1.25
Daily Pivot Point S2	1.2452
Daily Pivot Point S3	1.2401
Daily Pivot Point R1	1.2599
Daily Pivot Point R2	1.265
Daily Pivot Point R3	1.2698

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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