Technical Analysis:
GBP/USD is currently trading at 1.2960, having tested the support around the 1.2965 level several times over the last few sessions. The pair remains range-bound between the support at 1.2965 and the resistance near 1.2980. Both the 50-period and 200-period Weighted Moving Averages (WMA) are aligned near 1.2960, suggesting that this level is critical for determining the next directional move.
A break below the 1.2960 level would likely trigger further downside toward the 1.2920 support, while a recovery above 1.2980 could signal a bullish breakout, with the next target near 1.3000.
- Support: Immediate support lies at 1.2960, followed by 1.2920.
- Resistance: Resistance is found at 1.2980, followed by 1.3000.
Moving Averages:
GBP/USD is currently trading near the 50-period and 200-period WMAs, both positioned at 1.2960. This confluence of moving averages suggests a pivotal moment for the pair. A break above or below this level could indicate the next directional bias.
Volume:
Volume has been relatively low in the past few sessions, which may signal consolidation. An increase in volume with a break below 1.2960 could indicate bearish continuation, while a surge in volume above 1.2980 may signal a potential bullish breakout.
Key Levels to Watch:
- Support: 1.2960 (immediate), 1.2920 (next key support)
- Resistance: 1.2980 (immediate resistance), 1.3000 (next upside target)
Outlook:
GBP/USD remains in a consolidation phase between the 1.2960 support and 1.2980 resistance levels. A break below the 1.2960 level would suggest further downside, while a break above 1.2980 could open the door for a move toward 1.3000. Traders should watch closely for volume and price action around these key levels to determine the next move.
Fundamental Analysis:
The British Pound is under pressure as economic data out of the UK continues to show signs of slowing growth, while the US Dollar remains strong due to the Federal Reserve’s hawkish stance. Inflation and economic growth data from both countries will be key drivers for this pair in the coming days, with particular focus on the interest rate differential between the two economies.
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