Gbpusd Turns Lower

last updated on

Gbpusd Turns Lower

Gbp/Usd Turns Lower Towards 1.2700

GBP/USD has tumbled during Tuesday's session and is now trading near the 1.2700 support level. It appears that the greenback has the upper hand against the Pound as the market mood has turned sour ahead of the Fed's decision and the US inflation rate.

The fib retracement level shows that 23.6% is present near the 1.2700, which makes it a solid support. But if the GBP/USD fails to hold this level, then it would open the doors towards the 1.2640 and then the 1.2600 level.

Gbp/Usd Faces First Resistance At 1.2730

Similarly, the nearest resistance is 1.2730, where the GBP/USD bulls will face their first roadblock. Next up is the 1.2800, which is the midpoint of the trading channel and is also an important static level.

Overall, the GBP/USD has started the week in a bearish tone but has still managed to stabilize beyond the 1.2700. For now, we can't say that the GBP/USD is showing any signs of a recovery wave.

One interesting fact was the GBP/USD held its ground with limited loss while the USD showed broader strength. It appears that the decline in the EUR/GBP has helped the GBP to capture the capital outflows.

Today, the ONS also released the UK's unemployment rate which has gone up from 4.3% in April to around 4.4% in May. During the period, the total employment change was around -140K while the annual wage inflation remained steady near 6%.

Looking ahead, there's no high-impact data for the rest of the day but the upcoming US CPI & the Fed policy meeting will remain the key focus.

The next resistance levels for the GBP/USD traders to watch are 1.2740, 1.2750, 1.2765, and then the 1.2790 - 1.2800 zone. Similarly, the next support levels for the GBP/USD include the 1.2700, 1.2650, and then the 1.2620.

As far as the US Fed is concerned, the chances of a rate cut in September have sunk to new lows once again due to a stronger-than-expected NFP report.

Trending Stories