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GBP/USD: Recovery attempts remain limited below 1.2600

  • GBP/USD recovery attempts are likely to encounter strong resistance at 1.2600.
  • The weak ADP report failed to affect the US dollar.
  • The pair is under pressure after confirming a double top at 1.2730.

The GBP/USD pair tries to regain ground during the European session after bouncing from daily lows at 1.2540, although the 1.2600 level looks like a tough resistance zone.

Sterling bears remain in control after the pair accelerated its reversal from three-month highs above 1.2700 on Thursday. Sour market sentiment over fears of a global economic slowdown in 2024 is offering support to the safe-haven US dollar.

The weaker-than-expected US ADP jobs report failed to dent confidence in the Dollar, which is heading for a significant recovery this week, as expectations of monetary easing spread to most main central banks in the world. Investors now await Friday’s nonfarm payrolls report for more data on the U.S. labor market.

In the UK, BoE Governor Andrew Bailey maintained the need to keep interest rates at current levels for some time, although he cited risks to financial stability and noted challenges to the global economy from uncertainty. about China.

The technical outlook is bearish. Below 1.2600, the pair has confirmed a double top pattern at 1.2730, increasing negative pressure towards 1.2517 and 1.2460.

Technical levels to monitor

GBP/USD

Overview
Latest price today 1.2566
Today I change daily 0.0010
Today’s daily variation 0.08
Today’s daily opening 1.2556
Trends
daily SMA20 1.2516
daily SMA50 1.2324
SMA100 daily 1.2469
SMA200 daily 1,248
Levels
Previous daily high 1.2614
Previous daily low 1.2552
Previous weekly high 1.2733
Previous weekly low 1.2591
Previous Monthly High 1.2733
Previous monthly low 1.2096
Daily Fibonacci 38.2 1.2576
Fibonacci 61.8% daily 1,259
Daily Pivot Point S1 1.2534
Daily Pivot Point S2 1.2512
Daily Pivot Point S3 1.2472
Daily Pivot Point R1 1.2596
Daily Pivot Point R2 1.2636
Daily Pivot Point R3 1.2658

Source: Fx Street

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