GBP/USD Finds Support from BoE Rate Hike Prospects, Awaits UK PMI Data
In the Asian session on Wednesday, GBP/USD is trading higher around the 23.6% Fibonacci retracement level at 1.2740. The pair is deriving strength from the potential interest rate hikes anticipated in the upcoming Bank of England (BoE) meeting in September. Ahead of the release of the United Kingdom’s (UK) preliminary S&P Global/CIPS Composite PMIs for August, investors are exercising caution.
Immediate support is identified at the 55-day Exponential Moving Average (EMA) of 1.2728, followed by the weekly low at 1.2710. A decisive breach below the latter level might pave the way for GBP/USD sellers to navigate towards the monthly low at 1.2616.
Conversely, the GBP/USD pair could encounter a formidable challenge around the 21-day EMA situated at 1.2755, serving as a key resistance level. An upward breakthrough could potentially guide the pair towards exploring the area surrounding the psychological level of 1.2800, which aligns with the 38.2% Fibonacci retracement at 1.2817.
The Moving Average Convergence Divergence (MACD) line indicates moderate momentum, reflecting the mixed sentiment among GBP/USD traders. Although positioned below the centerline, the MACD line also demonstrates convergence below the signal line. The 14-day Relative Strength Index (RSI) remains below the 50 level, underscoring a bearish inclination in the pair’s dynamics.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals