GBPUSD Analysis
  • 07 February, 2024 Rajesh Tatineni

GBPUSD Analysis

Afternoon Session: The GBP/USD chart currently indicates a bearish overall momentum, suggesting a downward trend?

Highlights:

  • The Pound dropped to a low of 1.2535 yesterday’s European session.
  • 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 indicates a bearish overall momentum, suggesting a downward trend. The price could potentially experience a bearish reaction off the 1st resistance and drop to the 1st support.

The 1st support level at 1.2498 is identified as overlap support, coinciding with the 161.80% Fibonacci Extension, indicating its historical significance as a potentially strong support level.

Additionally, there is a 2nd support level at 1.2400, characterized as another overlap support, further reinforcing its importance as a potential support zone.

On the resistance side, the 1st resistance level at 1.2613 is categorized as a pullback resistance, with the presence of the 38.20% Fibonacci Retracement, indicating its historical significance as a potential point of resistance.

Furthermore, there is a 2nd resistance level at 1.2658, identified as a pullback resistance, coinciding with the 61.80% Fibonacci Retracement, which could act as a barrier for further upside movement.

Support and Resistance Levels:

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