Gbpusd Trades With Bullish Bias

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Gbpusd Trades With Bullish Bias

Gbp/Usd Trades With Bullish Bias Near 1.275

GBP/USD has switched directions towards the upside amid a weakness in the USD. As a result, the pair can be seen at a 2-week high near the 1.2750 handle.

According to economists, the upside in GBP/USD resulted from greenback weakness, which took place despite a strong PMI reading from the US side. The bigger picture suggests that the risk appetite and other dynamics support a bullish GBP/USD.

1.2750 Coincides With 20 &Amp;Amp;Amp;Amp;Amp; 50 Sma

The 1.2750 handle is essential for GBP/USD as the 20, 50, & and even the 100 SMA are located near it on the 4-hr chart. If the 1.2750 can act as a support level, the next target will be 1.2760, followed by the 1.2780 handle. Next up will be the 1.2820 level, a significant resistance zone.

On the downside, the nearest support can be found around 1.2680, where the 200 SMA is located. After that, the GBP/USD can see support at 1.2650, where the 50 SMA is located.

closer look at the GBP/USD price action shows that the pair turned lower after touching 1.2750. It lost almost 100 pips during the US trading session. However, the risk sentiment improved during the next session, which enabled the pair to recover most of its losses.

The S& P PMI from the UK is expected to touch 52.2 during January, according to economists. In December, the reading was 52.1, which suggests that a reading of 52.2 is doable in the current circumstances.

But if the upcoming PMI reading drops under 50, it would be a sign that the Bank of England will move towards a policy pivot. In that case, the GBP will come under pressure & likely resulting in a bearish GBP/USD.

The PMI reading from the US is also due to be released later today, which makes things more interesting for GBP/USD. The PMI reading for the services sector will likely be higher than 50 during January. A reading higher than expectations will boost the USD demand & and send the GBP/USD lower.

Although the PMI reading is essential for the GBP/USD, investors will pay close attention to the GDP for the 4th quarter.

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