GBP/USD Price Forecast: Eyes on $1.25052 Pivot; BOE Keeps Rate Unchanged

The British Pound (GBP/USD) experienced mild trading activity today, settling around $1.24820, up slightly by 0.07%.

Written by: Arslan Ali Butt • Thursday, May 9, 2024 • 1 min read

• Last updated: Thursday, May 9, 2024

GBP/USD Price Forecast: Eyes on $1.25052 Pivot; BOE Keeps Rate Unchanged

The British Pound (GBP/USD) experienced mild trading activity today, settling around $1.24820, up slightly by 0.07%.

GBP/USD Price Chart - Source: Tradingview — GBP/USD Price Chart – Source: Tradingview

The currency pair’s movements are framed within a rising channel pattern visible on the 4-hour chart, indicating a cautiously bullish sentiment among traders.

Upcoming Economic Events

The market anticipates the Bank of England’s Monetary Policy Report and Summary due today at 4:00 PM. With the Official Bank Rate expected to hold steady at 5.25%, investor focus will be on the MPC’s vote split for clues on future rate directions, previously recorded at 0-2-7 from a more dovish 0-0-9.

In today’s trading session, the pivot point has been determined to be at $1.25052, which plays a crucial role in setting the directional bias. Regarding resistance levels, the immediate hurdle for prices can be found at $1.25320. Following that, a significant barrier awaits at $1.25650, with further resistance looming at $1.27080, which denotes the upper limit of the current trading range.

On the flip side, the support structure begins at $1.24666 for immediate cushioning. Should prices retreat further, additional support lies at $1.23821, and even deeper support is anchored at $1.23118, aligning closely with the lower trend line of the ascending trading channel.

Technical Indicators: The Relative Strength Index (RSI) stands at 42.25, indicating neither overbought nor oversold conditions, but leaning towards potential bearish momentum. The 50-day Exponential Moving Average (EMA) is at $1.25132, slightly above the current price, suggesting some resistance at this level.

Conclusion: Given the proximity of the price to the pivot point and the slightly bearish tilt in RSI, traders might consider a cautious approach. Selling below $1.25052 could be a strategic move, reflecting a potential shift towards the support levels if bearish pressures intensify.

Conversely, a break above this pivot could invalidate the bearish outlook and push towards higher resistance levels, influenced by broader market sentiment and upcoming economic releases.

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ABOUT THE AUTHOR See More

Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.