GBPUSD attracts some sellers on Wednesday.
During European session on Wednesday, the GBPUSD pair snaps a three-day gain streak. The major pair’s decline is being supported by fresh US dollar demand. At the time of writing, GBPUSD is down 0.09% on the day, trading at 1.2525.
Andrew Bailey, Governor of the Bank of England (BoE), stated on Monday that it was too early to consider rate reduction. If inflation proves to be more persistent than expected, borrowing prices may have to rise again. Bailey went on to say that the situation in Gaza has raised the risk of inflation rising again.
GBPUSD Technical Outlook
The pair maintains an upward climb above the 50- and 100-hour EMAs, while the RSI indicator is above 50.
The immediate resistance level for GBPUSD is 1.2580, while the initial support level is 1.2456.
GBPUSD is trading above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope on the four-hour chart, indicating that the path of least resistance is to the upward. Furthermore, the Relative Strength Index (RSI) remains above 50, indicating that further higher is possible.
The upper Bollinger Band boundary around 1.2580 acts as an immediate resistance barrier for the major pair. The next upward obstacle is indicated near the September 4 high of 1.2642. The extra upside filter A high of 1.2713 on September 1 is to be watched, on the way to a high of 1.2746 on August 30.
On the downside, the initial support level for GBPUSD is near the November 16 high of 1.2456. The 50-hour EMA is the next negative objective spotted further south. The important contention level will be 1.2400, which represents the intersection of the bottom boundary of the Bollinger Band and a psychological round mark. If the level is breached, the price will fall to the 100-hour EMA at 1.2357.
