GBP/USD Remains Steady Amid Market Uncertainty
The GBP/USD pair maintains its position above 1.2600, trading near 1.2610 during Wednesday’s Asian session after a brief pullback in the previous session. Traders are now focused on the release of the UK Consumer Price Index (CPI) data for January, which could provide fresh momentum for the pair.
The British Pound (GBP) remains supported by strong UK employment data, which showed a steady unemployment rate at 4.4% and an increase in employment by 107,000 in December. However, Bank of England (BoE) Governor Andrew Bailey’s cautious comments on economic growth continue to weigh on sentiment.
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GBP/USD Technical Analysis – Key Support & Resistance Levels
📊 Technical Indicators:
✅ RSI above 60, indicating bullish momentum.
✅ GBP/USD trades above the 20-period Simple Moving Average (SMA), reflecting buyers’ control.
✅ Key Fibonacci retracement levels act as crucial support & resistance zones.
📈 Resistance Levels to Watch:
- 1.2650 – Key resistance (Fibonacci 78.6% retracement).
- 1.2700 – 1.2710 – Major resistance zone (psychological level).
📉 Support Levels to Watch:
- 1.2530 – First downside support (Fibonacci 61.8% retracement).
- 1.2500 – Psychological round level.
- 1.2460 – 1.2450 – Critical support (100-period SMA & Fibonacci 50% retracement).
📊 Now, let’s analyze GBP/USD’s daily price trend. 📈
Fundamental Overview – Key Market Drivers for GBP/USD
📌 UK Employment Data Provides Support for GBP
- The UK’s ILO Unemployment Rate remained steady at 4.4%, better than the forecasted 4.5%.
- Employment Change rose sharply to 107,000, up from 35,000 the previous month.
- Average Earnings Including Bonus climbed to 6.0%, reflecting wage growth resilience.
- Strong employment data supports the Pound Sterling, keeping GBP/USD above 1.2600.
📌 Traders Focus on UK CPI Inflation Data
- UK Consumer Price Index (CPI) data for January is expected to impact market direction.
- Higher inflation could reinforce Bank of England (BoE) rate expectations, strengthening GBP.
- Lower CPI figures could pressure GBP/USD towards support levels.
📌 Risk Sentiment & Market Flow Impacting USD
- US Dollar demand has fluctuated, driven by risk sentiment shifts and global economic uncertainty.
- If risk appetite strengthens, GBP/USD could gain further traction.
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Conclusion – What’s Next for GBP/USD?
The GBP/USD pair remains resilient above 1.2600, with UK CPI data expected to drive the next move. The BoE’s monetary stance and US market sentiment will be crucial factors shaping price action.
💡 Market Outlook:
✅ If GBP/USD clears 1.2650, further gains toward 1.2700 – 1.2710 are possible.
✅ If inflation data underwhelms, GBP/USD could fall toward 1.2530 or 1.2500.
✅ US Dollar strength & risk sentiment will determine near-term direction.
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