- GBP/USD moves sideways slightly above 1.2600 on Friday.
- Improving risk mood could help the pair stretch higher ahead of the weekend.
- GBP/USD needs to stabilize above 1.2650 to attract additional buyers.
GBP/USD declined below 1.2600 on Thursday but managed to stabilize above that level early Friday. In the absence of high-tier data releases, the risk perception could impact the US Dollar's (USD) valuation.
The USD benefited from recovering US Treasury bond yields on Thursday and weighed on GBP/USD. Hawkish remarks from Bank of England (BoE) officials and the modest improvement seen in risk mood, however, helped the pair erase its losses.
Bank of England (BoE) policymaker Catherine Mann explained on Thursday that she voted in favor of a rate hike in the last policy meeting because she is not convinced that the near-term declaration in headline inflation will continue. Early Friday, BoE policymaker Jonathan Haskel acknowledged that inflation pressures might be on the wane but he noted that he would need further evidence of a slowdown before altering his view on the rate outlook.
Following Thursday's indecisive action in Wall Street, US stock index futures trade modestly higher in the European session on Friday. In case there is a bullish opening, the USD could come under renewed selling pressure in the second half of the day.
Later in the day, the US Bureau of Labor Statistics will release its annual revisions of the last 5 years of seasonally adjusted Consumer Price Index data. Although it's difficult to say how the markets would react to revisions to inflation figures, GBP/USD's volatility could ramp up.
GBP/USD Technical Analysis
1.2650 (Fibonacci 23.6% retracement of the latest uptrend) aligns as immediate resistance for GBP/USD. In case the pair manages to flip that level into support, 1.2680 (20-day Simple Moving Average (SMA), 50-day SMA) could act as stiff resistance before 1.2700 (psychological level, 200-period SMA on the 4-hour chart).
On the downside, supports are located at 1.2600 (static level, psychological level), 1.2565 (200-day SMA) and 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
GBP/USD drifts higher ahead of UK election results
GBP/USD extends its sideways grind near 1.2750 in the American session on Thursday. A broadly softer US Dollar keeps the pair afloat but traders refrain from placing fresh bets on the Pound Sterling while awaiting exit polls of UK election.
EUR/USD: The US NFP will put the rebound to the test
EUR/USD kept alive its multi-session uptrend and advanced past the 1.0800 barrier in response to the so-far incessant downside pressure in the US Dollar, all ahead of the publication of crucial NFP data at the end of the week.
Gold consolidates weekly gains ahead of US NFP
Gold struggles to build on Wednesday's gains and trades in a narrow band above $2,350. Sustained US Dollar weakness alongside sluggish US Treasury bond yields help XAU/USD limit its losses ahead of Friday's key June jobs report from the US.
Bitcoin price falls amidst German government transfers
Bitcoin (BTC) faced rejection at the daily resistance level of $63,956 on Monday, resulting in a 4.2% decline over the next two days. BTC’s price extends its downward move and falls below $58,000 on Thursday, adding more than 4% losses in the day.
US June Nonfarm Payrolls Preview: Analyzing Gold price reaction to NFP surprises Premium
Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAU/USD pair's reaction to the previous 35 NFP prints*.