GBP/USD REBOUNDS FROM YTD LOW TO FRESH MONTHLY HIGH
GBP/USD rises for a second consecutive day, reaching around 1.3325, a fresh monthly high, after rebounding from the 1.3135 year-to-date low reached earlier this week. Despite hot US inflation, investors expect the Federal Reserve to hold rates at its next meeting, and neutral remarks from Fed Chair Kevin Warsh and a sharp drop in US Treasury yields pushed the US Dollar to a one-and-a-half-week low.
Meanwhile, the British Pound remains supported by Bank of England Governor Andrew Bailey’s remarks on above-target inflation, alongside stronger-than-expected UK GDP data.
From a technical perspective, GBP/USD has moved above the 1.3260–1.3265 confluence on the 4-hour chart, formed by the 100-period EMA and the 23.6% Fibonacci retracement of the August–October decline. The RSI is around 64, while the MACD is turning increasingly positive.
On the other hand, initial resistance is at 38.2% Fibonacci retracement at 1.3343, followed by 1.3406 at the 50.0% retracement and 1.3468 at the 61.8% level. On the downside, the 1.3265 area remains the key initial support, while a deeper pullback could bring the 1.3140 structural level into focus.
For market participants, the key factors remain GBP/USD near 1.3325, the 1.3135 year-to-date low, 1.3265 support, 1.3343 resistance, 1.3406 and 1.3468 Fibonacci levels, US Federal Reserve rate expectations, US Treasury yields, BoE policy signals and UK GDP data, which may provide further context for the pair’s near-term direction.
⚠️ Risk warning: Trading forex and CFDs involves significant risk. You may lose all of your invested capital.
