Pound Sterling Price News and Forecast: GBP/USD recovery to remain limited unless 1.2000 resistance fails

FXStreet Team FXStreet

GBP/USD outlook: Renewed bears probe again through key support zone

Cable lost ground after recovery was strongly rejected at the base of falling weekly Ichimoku cloud on Tuesday and fresh bearish acceleration on Thursday broke psychological 1.20 level, to test key support zone at 1.1950/14 (Fibo 38.2% of 1.1146/1.2446 / 200DMA / Feb 17 spike low), which contained several attacks in past three weeks.

Weakening structure of daily studies (negative momentum is rising / RSI is heading south / moving averages almost in full bearish setup) is maintaining downside pressure, while descending weekly cloud continues to weigh on near-term action after larger recovery was capped by the cloud base on Jan 23. Read more ...

GBP/USD Forecast: Recovery to remain limited unless 1.2000 resistance fails

GBP/USD has managed to stage an upward correction during the Asian trading hours on Friday and continued to edge higher toward 1.2000 in the early European morning. The pair needs to flip that level into support to attract buyers and extend its rebound.

After the data from the US revealed on Thursday that Unit Labor Costs rose by 3.2% in the fourth quarter, the benchmark 10-year US Treasury bond yield climbed to its highest level since early November above 4% and provided a boost to the US Dollar. In the late American session, however, Atlanta Fed President Raphael Bostic's cautious comments on policy tightening helped the market mood improve and limited the USD's upside, allowing GBP/USD to find support. Read more ...

GBP/USD steadily climbs back closer to 1.2000 mark amid broad-based USD weakness

The GBP/USD pair attracts fresh buyers in the vicinity of a technically significant 200-day Simple Moving Average (SMA) and reverses a part of the overnight losses back closer to the weekly low. The pair sticks to its intraday gains and is currently placed near the top end of the daily range, just a few pips below the 1.2000 psychological mark.

A modest pullback in the US Treasury bond yields prompts some selling around the US Dollar, which, in turn, is seen as a key factor pushing the GBP/USD pair higher. The British Pound draws additional support from rising bets for additional rate hikes by the Bank of England (BoE). It is worth recalling that the BoE Governor Andrew Bailey said on Wednesday that some further increase in bank rates may turn out to be appropriate, though added that nothing is decided. Read more ...

GBP/USD

Overview
Today last price	1.1997
Today Daily Change	0.0046
Today Daily Change %	0.38
Today daily open	1.1951

Trends
Daily SMA20	1.2047
Daily SMA50	1.2141
Daily SMA100	1.1977
Daily SMA200	1.1919

Levels
Previous Daily High	1.2036
Previous Daily Low	1.1925
Previous Weekly High	1.2148
Previous Weekly Low	1.1928
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.1967
Daily Fibonacci 61.8%	1.1994
Daily Pivot Point S1	1.1905
Daily Pivot Point S2	1.1859
Daily Pivot Point S3	1.1794
Daily Pivot Point R1	1.2016
Daily Pivot Point R2	1.2082
Daily Pivot Point R3	1.2128

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.