GBP/USD Forecast: Pound Sterling could push higher once it clears 1.2640 resistance
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $479.76 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- GBP/USD clings to modest daily gains above 1.2600 early Monday.
- The near-term technical outlook points to a bullish tilt.
- The pair could face stiff resistance at 1.2640.
GBP/USD registered losses in the previous week but closed slightly above the key 1.2600 level. At the beginning of the new week, the pair continues to inch higher and the near-term technical outlook points to a bullish tilt.
The US Dollar (USD) gathered strength in the early American session on Friday after the stronger-than-forecast January producer inflation from the US and caused GBP/USD to retreat below 1.2600. Ahead of the weekend, however, the USD lost its footing amid profit-taking and allowed the pair to erase its losses.
The economic calendar will not offer any high-tier data releases on Monday. Moreover, bond and stock markets in the US will remain closed in observance of the Presidents' Day holiday. Hence, the trading action is likely to remain subdued in the second half of the day.
Meanwhile, the UK's FTSE 100 Index opened near the previous week's closing level, highlighting a neutral market mood in the early European session.
On Thursday, preliminary February Manufacturing and Services PMI surveys for the UK and the US will be looked upon for fresh impetus. On Wednesday, the Federal Reserve will release the minutes of the January policy meeting.
GBP/USD Technical Analysis
The Fibonacci 23.6% retracement of the latest uptrend aligns as immediate resistance at 1.2640. The 20-day Simple Moving Average (SMA) reinforces that hurdle as well. If GBP/USD stabilizes above that level, 1.2670 (200-period SMA on the 4-hour chart) and 1.2700 (psychological level, static level) could be set as next bullish targets.
On the downside, first support is located at 1.2600 (psychological level, static level, 50-period SMA) before 1.2540 (Fibonacci 38.2% retracement).
- GBP/USD clings to modest daily gains above 1.2600 early Monday.
- The near-term technical outlook points to a bullish tilt.
- The pair could face stiff resistance at 1.2640.
GBP/USD registered losses in the previous week but closed slightly above the key 1.2600 level. At the beginning of the new week, the pair continues to inch higher and the near-term technical outlook points to a bullish tilt.
The US Dollar (USD) gathered strength in the early American session on Friday after the stronger-than-forecast January producer inflation from the US and caused GBP/USD to retreat below 1.2600. Ahead of the weekend, however, the USD lost its footing amid profit-taking and allowed the pair to erase its losses.
The economic calendar will not offer any high-tier data releases on Monday. Moreover, bond and stock markets in the US will remain closed in observance of the Presidents' Day holiday. Hence, the trading action is likely to remain subdued in the second half of the day.
Meanwhile, the UK's FTSE 100 Index opened near the previous week's closing level, highlighting a neutral market mood in the early European session.
On Thursday, preliminary February Manufacturing and Services PMI surveys for the UK and the US will be looked upon for fresh impetus. On Wednesday, the Federal Reserve will release the minutes of the January policy meeting.
GBP/USD Technical Analysis
The Fibonacci 23.6% retracement of the latest uptrend aligns as immediate resistance at 1.2640. The 20-day Simple Moving Average (SMA) reinforces that hurdle as well. If GBP/USD stabilizes above that level, 1.2670 (200-period SMA on the 4-hour chart) and 1.2700 (psychological level, static level) could be set as next bullish targets.
On the downside, first support is located at 1.2600 (psychological level, static level, 50-period SMA) before 1.2540 (Fibonacci 38.2% retracement).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.