GBPUSD Analysis
Afternoon Session: The pound currently exhibits bearish momentum indicating a downward trend?
Highlights:
- Construction activity in the UK has contracted over the past four months as total new work decreased at the slowest pace.
- The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6-to-3 to maintain its Official Bank Rate at 5.25% for the fourth consecutive meeting.
- CPI inflation is projected to be 2.3% in two years and 1.9% in three years.
The GBP/USD chart currently exhibits a bearish overall momentum, indicating a downward trend. According to the analysis, the price could potentially rise towards the 1st resistance in the short term before reversing off it and dropping towards the 1st support.
The 1st support level at 1.2530 is identified as multi-swing low support and is reinforced by the presence of the 161.80% Fibonacci Extension. This suggests that it has historical significance and could potentially act as a strong support level where buying interest may emerge.
There is also a 2nd support level at 1.2453, characterized as an overlap support, which adds to its importance as a potential support zone.
On the resistance side, the 1st resistance level at 1.2613 is categorized as a pullback resistance, indicating that it represents a point where the price has encountered resistance in the past.
Additionally, there is a 2nd resistance level at 1.2658, identified as another pullback resistance.
Support and Resistance Levels:
