GBP/USD Price Analysis: Remains calm near 1.2770 ahead of UK, US PMI data
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●GBP/USD stays tranquil as it anticipates the upcoming PMI data from both countries.
●A break above the 1.2800 could lead the pair to approach August’s high at 1.2841.
●A breach below the 1.2700 could push the pair towards the 14-day EMA at 1.2624.
GBP/USD grapples to continue its winning streak that began on Monday, trading around 1.2770 during the Asian hours on Friday. The GBP/USD pair receives a boost from the hawkish stance of the Bank of England (BoE).
As anticipated, the BoE opted to maintain the interest rates at 5.25% during Thursday's decision. BoE Governor Andrew Bailey remarked that there is still some distance to cover before inflation aligns with its target, contributing to the overall hawkish sentiment. Investors await Purchasing Managers Index (PMI) data from both nations on Friday.
Additionally, the technical indicators for the GBP/USD pair are signaling a bullish outlook. The 14-day Relative Strength Index (RSI) above the 50 level indicates upward support, suggesting a bullish momentum in favor of the pair.
Additionally, the Moving Average Convergence Divergence (MACD) line, positioned above the centerline and the signal line, implies a strong momentum in the GBP/USD pair.
The GBP/USD could face a challenge around the psychological region at the 1.2800 level. A firm breakthrough above the latter could support the pair to approach August’s high at 1.2841 level before the major level at 1.2850.
Looking at the downside, the psychological level at 1.2700 appears to be a crucial support region. A breach below this level might propel the GBP/USD pair towards the 14-day Exponential Moving Average (EMA) at 1.2624, followed by the 23.6% Fibonacci retracement at 1.2610.
If the pair extends its decline beyond this point, it could find itself navigating around the 38.2% Fibonacci retracement, marked at 1.2500.
GBP/USD Daily Chart, Source: TradingView.
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