- GBP/USD struggles to defend the first daily gains in three, retreats from intraday high.
- 100-SMA, one-week-old ascending trend line restricts immediate downside; bearish MACD signals prod Cable pair buyers.
- 200-SMA holds the gate for Sterling bear’s welcome.
GBP/USD portrays pre-Fed consolidation near 1.2490 as it retreats from its intraday high heading into Wednesday’s London open. Even so, the Cable pair remains firmer for the first day in three. That said, the quote’s latest pullback could be linked to the bearish MACD signals, apart from the cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements.
Also read: GBP/USD nears 1.2500 as doubts over Fed's role in banking turmoil weigh on US Dollar
However, the GBP/USD pair’s sustained trading beyond the 100-SMA and an ascending support line from April 21, respectively near 1.2460 and 1.2440, keeps the buyers hopeful.
Even if the Cable pair breaks the 1.2440 trend line support, the 200-SMA level of around the 1.2400 threshold can prod the GBP/USD bears.
In a case where the quote remains bearish past 1.2400, lows marked during April 17 and 10, close to 1.2355 and 1.2345, can act as the last defenses of the GBP/USD buyers before directing the pair towards the previous monthly low of near 1.2275.
On the contrary, GBP/USD recovery needs validation from the 1.2500 round figure to challenge a downward-sloping resistance line from the last Friday, close to 1.2520 at the latest.
Following that, a one-month-old ascending resistance line, near 1.2565, precedes the 1.2600 round figure to challenge the GBP/USD buyers targeting the one-year high of around 1.2665.
GBP/USD: Four-hour chart
Trend: Further upside expected
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
EUR/USD stabilizes near 1.0400, volumes remain light on New Year's Eve
EUR/USD stabilizes at around 1.0400 on Tuesday following Monday's choppy action. The cautious market stance helps the US Dollar stay resilient against its rivals and doesn't allow the pair to gain traction as trading conditions remain thin heading into the end of the year.
GBP/USD retreats below 1.2550 after short-lasting recovery attempt
GBP/USD loses its traction and retreats below 1.2550 after climbing above 1.2600 on Monday. Although falling US Treasury bond yields weighed on the USD at the beginning of the week, the risk-averse market atmosphere supported the currency, capping the pair's upside.
Gold rebounds after finding support near $2,600
After posting losses for two consecutive days, Gold found support near $2,600 and staged a rebound early Tuesday. As investors refrain from taking large positions ahead of the New Year Day holiday, XAU/USD clings to daily gains at around $2,620.
These three narratives could fuel crypto in 2025, experts say
Crypto market experienced higher adoption and inflow of institutional capital in 2024. Experts predict the trends to look forward to in 2025, as the market matures and the Bitcoin bull run continues.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.