GBP/USD Reverses Course Towards 1.2700 Before Weekly Close
GBP/USD has extended its recovery from around 1.2600 and is approaching 1.2700 due to the weakened US Dollar. The greenback lost momentum following comments from Fed's Powell. The daily chart for the GBP/USD pair shows it trading around 1.2650 after reaching a peak of 1.2674 in the morning European session. The pair is performing well above its moving averages, with the 20-day Simple Moving Average aiming to cross the 100 and 200 SMAs, often a sign of strong buying pressure. Meanwhile, technical indicators are pulling back from overbought levels but lack downside strength, reflecting limited selling pressure.
Looking ahead on the 4-hour chart, the risk seems to be diminishing. The flat 20-period SMA limits the upside around 1.2675, although the 100 SMA maintains a much gentler upward slope than the current level. Finally, technical indicators point southward, with the Momentum indicator dipping below the 100-level and the Relative Strength Index (RSI) holding at a neutral level. A more substantial decline could be anticipated if the exchange rate breaks below 1.2605, the immediate support level.
Support levels: 1.2605, 1.2570, 1.2525
Resistance levels: 1.2680, 1.2730, 1.2780
GBP/USD is poised for a stronger stance on Friday, recovering from the Thursday low of 1.2603. Hawkish comments from Bank of England (BoE) officials have supported the British Pound. Monetary Policy Committee (MPC) member Megan Greene stated that monetary policy would need to remain restrictive for an extended period to achieve the central bank's 2% inflation target. Greene also expressed concerns about prolonged inflation. Additionally, BoE's Jonathan Haskel noted that low unemployment rates could keep interest rates elevated.
On the data front, the UK released the Nationwide House Price Index, which increased by 0.2% compared to the previous month in November, surpassing expectations. S&P Global also published the final estimate of the Manufacturing PMI for November, adjusted upwards to 47.2 from the preliminary estimate of 46.7.
Looking ahead on the 4-hour chart, the risk seems to be diminishing. The flat 20-period SMA limits the upside around 1.2675, although the 100 SMA maintains a much gentler upward slope than the current level. Finally, technical indicators point southward, with the Momentum indicator dipping below the 100-level and the Relative Strength Index (RSI) holding at a neutral level. A more substantial decline could be anticipated if the exchange rate breaks below 1.2605, the immediate support level.
Support levels: 1.2605, 1.2570, 1.2525
Resistance levels: 1.2680, 1.2730, 1.2780
GBP/USD is poised for a stronger stance on Friday, recovering from the Thursday low of 1.2603. Hawkish comments from Bank of England (BoE) officials have supported the British Pound. Monetary Policy Committee (MPC) member Megan Greene stated that monetary policy would need to remain restrictive for an extended period to achieve the central bank's 2% inflation target. Greene also expressed concerns about prolonged inflation. Additionally, BoE's Jonathan Haskel noted that low unemployment rates could keep interest rates elevated.
On the data front, the UK released the Nationwide House Price Index, which increased by 0.2% compared to the previous month in November, surpassing expectations. S&P Global also published the final estimate of the Manufacturing PMI for November, adjusted upwards to 47.2 from the preliminary estimate of 46.7.
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