- GBP/USD gains traction near 1.2540 ahead of the US PMI data.
- The pair holds above the 50- and 100-hour EMA; the RSI indicator stands in bullish territory above 50.
- 1.2550 will be the first resistance level; the critical support level will emerge at 1.2525.
The GBP/USD pair gains ground to a two-month high of 1.2575 and then pulled back to 1.2540 during the Asian trading hours on Friday. The uptick of the pair is supported by the stronger-than-expected UK S&P Global/CIPS PMI data for November. The attention will shift to the US S&P Global PMI data, due later on Friday.
On Thursday, the preliminary UK S&P Global/CIPS Composite PMI grew unexpectedly in November, coming in at 50.1 in November from 48.7 in October, better than expected of 48.7. Additionally, the Manufacturing PMI improved to 46.7 versus 44.8 prior, while the Services PMI rose to 50.5 from 49.5 previously. The British Pound (GBP) surged against the US Dollar (USD) as the Bank of England (BoE) Governor Andrew Bailey suggested interest rates could remain higher for longer than priced by investors.
According to the four-hour chart, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs), suggesting the path of least resistance is to the upside. The upper boundary of the Bollinger Band at 1.2550 will be the first resistance level for the pair. The next hurdle is seen near a high of November 23 at 1.2575. Further north, the upside target to watch is a high of September 4 at 1.2642, followed by a high of September 1 at 1.2713.
On the downside, the critical support level will emerge at 1.2525, portraying the confluence of the lower limit of the Bollinger Band and the 50-hour EMA. A break below the latter will pave the way to the 100-hour EMA and a psychological round mark at the 1.2500–1.2505 region. Any follow-through selling will see a drop to a high of November 16 at 1.2456 and finally at 1.2400 (round figure).
It’s worth noting that the Relative Strength Index (RSI) holds in the bullish territory above 50, indicating further upside looks favorable.
(This story was corrected on November 24 at 08:13 GMT to say, in the first paragraph, that the GBP/USD pair gained ground to a two-month high of 1.2575, not 1.2569.)
GBP/USD four-hour chart
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 retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.