- GBP/USD pair is trading around 1.2450, consolidating near its weekly high as bulls and bears vie for control.
- The upcoming key data releases and events are influencing the price movement of the Cable pair.
- Technical analysis indicates that the 50-day moving average (DMA) at 1.2450 is acting as immediate resistance, while a descending resistance line breakout and a potential bullish MACD crossover provide optimism for buyers.
The GBP/USD pair continues to hover near its weekly high as bulls and bears battle for control ahead of important data releases and events scheduled for Thursday. At the start of Thursday’s European trading session, the Cable pair is trading around 1.2450, benefitting from a retreat in the US Dollar due to cautious optimism and a reduced hawkish bias from the Federal Reserve (Fed). In addition, the growing expectations of further rate increases by the Bank of England (BoE) are providing support to buyers of the Pound sterling.
From a technical perspective, the immediate upside of the GBP/USD pair is being capped by the 50-day moving average (DMA) resistance level at 1.2450, while the relative strength index (RSI) (14) is holding steady. However, the impending bullish crossover on the moving average convergence divergence (MACD) and the pair’s sustained breakout of a descending resistance line that has been in place for one week are keeping buyers hopeful.
While these factors suggest a potential breakout above the immediate hurdle of the 50-DMA around 1.2450, an upward-sloping resistance line dating back to late 2022, currently near 1.2465, could pose a challenge for GBP/USD buyers in the near term. Beyond that, the mid-April high near 1.2550 will serve as the final defence for Pound Sterling Bears.
On the downside, a pullback in GBP/USD is unlikely unless it falls below a previous resistance line from two weeks ago, which is currently around 1.2400. If the pair drops below this level, the next support level to watch is the recent trough around 1.2305, which may attract Cable bears.
In the event that the Pound Sterling weakens further below 1.2305, attention will shift to the 50% and 61.8% Fibonacci retracement levels of its March-May upside, located near 1.2240 and 1.2135, respectively.
Given the potential volatility in the GBP/USD pair, it is crucial for investors and individuals in South Africa to closely monitor these developments, as they can impact currency exchange rates and international trade, which in turn can have implications for the South African economy and investment landscape.
Title: GBP/USD Price Analysis and Technical Levels
|Current Level||Around 1.2450|
|Technical Analysis||Resistance and Outlook|