GBPUSD Technical Analysis – We are back at the top of the range | Forexlive

USD

GBP

The BoE left interest rates unchanged as expected at the last meeting
removing the tightening bias but reaffirming that they will keep rates high for
sufficiently long to return to the 2% target.
The employment report beat expectations across the board
with a positive revision to the December’s negative payroll figure.
The UK CPI missed expectations across the board but with
Services inflation remaining sticky, which continues to support the BoE’s
patient stance.
The latest UK PMIs improved from the prior month with the
Services PMI beating expectations and the Manufacturing PMI missing.
The market expects the first rate
cut in June.

GBPUSD Technical Analysis –
Daily Timeframe

GBPUSD Daily

On the daily chart, we can see that GBPUSD surged
all the way back to the top of the range around the 1.28 handle. This is where
we can expect the sellers to step in with a defined risk above the resistance to
position for a drop back into the bottom of the range. The buyers, on the other
hand, will want to see the price breaking higher to start targeting the 1.30
handle.

GBPUSD Technical Analysis –
4 hour Timeframe

GBPUSD 4 hour

On the 4 hour chart, we can see that from a risk
management perspective, the buyers will have a much better risk to reward setup
around the previous resistance turned support at the
1.27 handle where they will also find the 61.8% Fibonacci retracement level
for confluence. The
sellers, on the other hand, will want to see the price breaking below the
support to target new lows.

GBPUSD Technical Analysis –
1 hour Timeframe

GBPUSD 1 hour

On the 1 hour chart, we can see that we
have another good support around the 1.2765 level where we can find the
confluence of the trendline and
the Fibonacci retracement levels. This is where we can expect the buyers to
step in with a defined risk below the trendline to position for a break above
the resistance with a better risk to reward setup. The sellers, on the other
hand, will want to see the price breaking lower to invalidate the bullish setup
and increase the bearish bets into the 1.27 support.