GBPUSD trading below the mid 1.2600 with the next negative target between 1.2600-1.2605.
During Thursday’s early European trading hours. The GBPUSD pair remained on the defensive around 1.2630. The hawkish tone of Federal Reserve (Fed) Governor Christopher Waller early Thursday raised the US Dollar (USD) significantly. Creating a headwind for the GBPUSD pair.
This comes ahead of UK GDP growth statistics.
The Fed’s Waller said the US central bank is not in a haste to cut the benchmark rate. And may need to “maintain the current rate target for a longer period than expected.” Traders are waiting for the final UK Gross Domestic Product (GDP) growth number for Q4 on Thursday. Which is expected to fall 0.3% quarter on quarter.
GBPUSD Technical Outlook
The pair has a negative mood below the crucial EMA. While the RSI indicator remains below the 50 midlines.
The immediate resistance level will be 1.2655, with the initial support level being between 1.2600 and 1.2605.
Technically, GBPUSD remains bearish, with the major pair holding below the important 100-period Exponential Moving Average (EMA) on the four-hour chart. The Relative Strength Index (RSI), which is below the 50-midline, confirms the downward momentum and supports sellers for the time being.
The initial upside obstacle for GBPUSD will appear near the upper boundary of the Bollinger Band, at 1.2655. A break above the latter would reveal the 100-period EMA at 1.2685. Further north, the next hurdle is expected near March 18’s high of 1.2746, followed by the psychological threshold of 1.2800.
On the other hand, the major pair’s initial support level is positioned near the lower limit of the Bollinger Band, in the 1.2600-1.2605 range. A violation of this level will lead to a low of 1.2575 on March 22. The next conflict level to monitor is a low on February 14 at 1.2535, upon route to the 1.2500 round number.
