GBPUSD sold off this week

GBPUSD sold off this week, slipping below a technical floor at 1.2430 and hitting its lowest point since November. With bearish momentum prevailing, there's potential for accelerated losses in the short term, possibly prompting a revisit of 1.2320 – a major Fibonacci support level. Prices may bottom out in this area before reversing higher; but in the case of a breakdown, a move towards 1.2168 could unfold.

Alternatively, if sentiment shifts back in favor of buyers and cable rebounds off its current position, resistance zones can be identified at 1.2430 and 1.2525 subsequently. Upside clearance of these levels could boost upward impetus, creating the right conditions for a rally towards the 200-day simple moving average at 1.2570.

Comment:

GBP/USD breaks two-week high at 1.2500

GBP/USD rose to a two-week high of 1.2500 since April 12.

GBP/USD has had a pretty good run this week, especially after Monday's decline. The pair tested the 1.2300 level before bouncing back more than 200 pips to 1.2520.

The 38.2 Fib retracement level at 1.2526, now offers some minor resistance. Next is the 200-day moving average at 1.2559 which is a more important level to be cautious of in the coming days.

Comment:

GBP/USD's upward momentum is currently continuing and the pair is currently trading around 1.2500. The reason for the recent increase in the British Pound mainly comes from the latest economic data signaling that the BoE may have to keep interest rates at high levels for a longer period of time.