GBP/USD trades near 1.2520 after retreating from the 11-week high

GBP/USD halts a three-day winning streak as the Greenback rises.
Fed will tighten policy even more If the inflation target is not met.
BoE Governor Bailey brushed down rumors that the BoE may start loosening its policies by June 2024.

Akhtar Faruqui FXStreet

GBP/USD breaks a three-day winning streak after dropping from the 11-week high at 1.2559 due to the rise in the US dollar (USD). The GBP/USD pair trades lower around 1.2520 on Wednesday during the European session.

The hawkish comments made by Bank of England (BoE) officials on Tuesday helped the Pound Sterling (GBP) and provided a tailwind for the GBP/USD pair. Moreover, Andrew Bailey, the governor of the Bank of England (BoE), cautioned investors during a Treasury Select Committee hearing on Tuesday that they are undervaluing the longevity of UK inflation and are placing too much emphasis on the most recent data.

Governor Bailey also downplayed rumors that the BoE will begin policy easing by June 2024 and emphasized that the central bank would maintain high-interest rates for an extended period of time.

Ahead of the UK's autumn budget announcement, Prime Minister of the United Kingdom (UK), Rishi Sunak, declared that the government intends to lower taxes in response to a drop in inflation. It is expected that Jeremy Hunt, the Chancellor of the Exchequer, would announce policies intended to accelerate economic growth, with proposals to increase business investment being one of the main objectives.

The Federal Open Market Committee (FOMC) meeting minutes on Tuesday revealed a modestly hawkish tone, providing upward support for the US Dollar (USD). Committee members discussed the possibility of further tightening of monetary policy if fresh data fails to align with the Federal Reserve's (Fed) inflation goal. The Board decided to maintain a tight policy until there is clear and sustained progress toward the Committee's inflation objective.

Investors are likely to anticipate key data releases from the United States (US) on Wednesday, including weekly jobless claims and the Michigan Consumer Sentiment survey. Additionally, the preliminary S&P Global/CIPS Purchasing Managers Index (PMI) from the United Kingdom (UK) is scheduled for publication on Thursday.

GBP/USD: technical levels to watch

Overview
Today last price	1.2521
Today Daily Change	-0.0015
Today Daily Change %	-0.12
Today daily open	1.2536

Trends
Daily SMA20	1.2294
Daily SMA50	1.2257
Daily SMA100	1.2505
Daily SMA200	1.2448

Levels
Previous Daily High	1.2559
Previous Daily Low	1.2501
Previous Weekly High	1.2506
Previous Weekly Low	1.2213
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2537
Daily Fibonacci 61.8%	1.2523
Daily Pivot Point S1	1.2505
Daily Pivot Point S2	1.2474
Daily Pivot Point S3	1.2446
Daily Pivot Point R1	1.2563
Daily Pivot Point R2	1.2591
Daily Pivot Point R3	1.2622

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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