OctaFX | OctaFX Forex Broker
Open trading account

GBP/USD Price Analysis: Bulls challenge descending channel resistance, around 1.2960-65 region

  • GBP/USD reverses the BoE rate cut-led slide to one-week lows.
  • The technical set-up warrants some caution for bullish traders.

The GBP/USD pair managed to find decent support near the lower end of a short-term descending trend-channel and quickly reversed an early slide to one-week lows – triggered by the BoE's emergency rate cut.

The pair jumped to fresh session tops in the last hour, albeit lacked any strong follow-through. As the BoE Governor Mark Caney's press conference got underway, the pair held steady above mid-1.2900s.

Meanwhile, technical indicators on the 1-hourly chart are yet to catch up with the pair's strong intraday rally of over 100 pips and warrants some caution before positioning for any further near-term appreciating move.

Hence, any subsequent strength seems more likely to meet with some fresh supply near the mentioned trend-channel resistance, around the 1.2975 region, which is closely followed by the key 1.30 psychological mark.

The latter coincides with 100-hour SMA, which if cleared might be seen as a fresh trigger for intraday bullish traders and set the stage for additional gains, possibly back towards reclaiming the 1.3100 round-figure mark.

On the flip side, the 1.2900-1.2890 region now seems to act as strong immediate support, which if broken, might turn the pair vulnerable to head towards retesting the channel support near the 1.2815-10 area.

GBP/USD 1-hourly chart


Technical levels to watch


Australia: Strong January for housing finance – ANZ

January figures show solid data for housing finance reaching highest results since 2014. However, the future is blur due to labour market strains, in
Read more Previous

United Kingdom Index of Services (3M/3M) meets expectations (0%) in January

United Kingdom Index of Services (3M/3M) meets expectations (0%) in January
Read more Next
Start livechat