On the daily chart below for GBPUSD we can see that the price has been consolidating around the top of the major range at 1.2444. The red long period moving average though gave support to the buyers and limited all the sellers’ attempts to break down.

The US Dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term weakness is connected with the market expectations that the Fed is done hiking rates and will begin cutting them before the end of the year. Not even a strong NFP report last Friday could change the market’s view as the downward spike out of the report was quickly faded. For now, the buyers are clearly in charge.

GBPUSD technical analysis

On the 4 hour chart below, we can see more closely the consolidation around the 1.2444 resistance with just one failed probe above it. The price is now bouncing from the red long period moving average. The sellers will want to see the price breaking through that moving average to start piling in and position for a downside move. The risk event to watch is tomorrow’s US CPI report where higher than expected data is likely to cause a selloff while lower than expected figures should lead to another rally in the pair.

On the 1 hour chart below, we can see that the price bounced from the 4 hour red long period moving average and the 50% Fibonacci retracement level. The buyers will need to break above the swing high at 1.2645 to make a new higher high on this timeframe and keep the bullish momentum going. The sellers, on the other hand, will need a break below the 1.26 handle to start piling in and extend the fall to 1.2550.