GBP/USD continues to buy at the 1.2654 Fibonacci level

GBP/USD is trading above 1.2650 early Thursday, finding support from a broadly subdued US Dollar. Mixed US data, dovish Fed commentary and an upbeat market mood continue to act as a headwind to the US Dollar ahead of more statistics and Fedspeak.

The 50-day SMA, the Fibonacci 38.2% retracement of the latest downtrend and the 200-period SMA on the 4-hour chart form immediate resistance at 1.2670-1.2680. In case GBP/USD rises above that level and starts using it as support, 1.2710 (Fibonacci 50% retracement) and 1.2750 (Fibonacci 61.8% retracement) could be seen as next resistance levels.

On the downside, the 100-day SMA aligns as first support at 1.2660. If GBP/USD drops below that level, technical sellers could take action. In this scenario, 1.2620 (Fibonacci 23.6% retracement) could be seen as next support before 1.2590 (200-day SMA).