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GBPUSD Technical Analysis – We are at a key level – ForexLive

USD

  • The Fed kept interest rates on hold as expected at its previous meeting, dropping its tightening bias in a statement.
  • US PCE matched expectations.
  • U.S. jobless claims were lower than expected, but the data remains within recent ranges.
  • The latest US PMI rose further from last month as the manufacturing PMI came in above expectations but the services PMI came in below expectations.
  • U.S. consumer confidence fell short of expectations across the board.
  • Markets expect the first rate cut to occur in June.

GBP

  • The Bank of England left interest rates on hold as expected at its previous meeting, eliminating its tightening bias, but reaffirmed its intention to keep rates high long enough to return to its 2% target.
  • The employment statistics were revised upward from December’s negative figure, and exceeded overall expectations.
  • UK CPI was weaker than expected across the board, but services inflation remains sticky, which continues to support the Bank of England’s patient stance.
  • The latest UK PMI improved from the previous month, with services PMI coming in better than expected but manufacturing PMI coming in worse than expected.
  • Latest UK retail sales numbers far exceeded overall expectations.
  • The market expects the first rate cut to occur in June.

GBPUSD Technical Analysis – Daily Timeframe

GBPUSD Daily

On the daily chart, we see that GBPUSD continues to trade within a range with volatile price action. Yesterday, the pair fell to the important 1.2612 level, where we also find the confluence red 21 moving average. Here we can expect buyers to intervene with a clear risk below the level where they would position for a rise towards the 1.28 handle. On the other hand, sellers will be hoping for the price to break through the lows and build up, targeting a fall to the 1.25 support.

GBPUSD Technical Analysis – 4 Hour Timeframe

pound dollar 4 hours

On the 4-hour chart, we can see that the pair failed to move above the 1.2685 level and as soon as the price broke through the uptrend line, sellers consolidated their positions for a decline to new lows. The bias is currently to the downside, but the range between support at 1.2612 and resistance at 1.2685 could become smaller. A break on either side should lead to a sustained move in the direction of the breakout.

GBPUSD Technical Analysis – 1 Hour Timeframe

pound dollar 1 hour

On the 1-hour chart, we can take a closer look at the recent price movement with the latest pullback at the 1.2612 support. Pay attention to today’s data as it could lead to a breakout.

upcoming events

The only notable event today is the release of the US ISM Manufacturing PMI.

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