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HomeFinance NewsCable (GBP/USD) Strives for Rebound: Key Levels for Potential Decline

Cable (GBP/USD) Strives for Rebound: Key Levels for Potential Decline

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The GBP/USD analysis highlights a quiet economic calendar but scattered with central bank speakers. There is a reference to the positive signs shown on the inflation front and the possibility of a challenge in getting inflation to the 2% marker, as well as a combined feeling that no one on the committee feel hurried into delivering the first interest rate cut as the US economy marches on. The GBP/USD has managed to reclaim some of the lost ground after a prior NFP-inspired drop, with resistance appearing at the December swing high of 1.2736 followed by channel resistance at 1.2800.

Despite the quiet economic calendar, there are central bank speakers scattered throughout the week and a number of prominent Fed officials set to speak. The recent Fed speak has made reference to the positive signs shown on the inflation front and the challenges in getting inflation to the 2% marker from current levels. Despite the quiet week, the GBP/USD has managed to reclaim some of the lost ground, resulting in a partial recovery after the prior NFP-inspired drop. Resistance appears at the December swing high of 1.2736 followed by channel resistance at 1.2800, indicating a potential bearish continuation if the 200 SMA is crossed.

The fundamentals show that the US economy is ahead of the UK, affecting the anticipated start of rate cuts in the US and presenting GBP/USD with familiar territory for now. Despite the economic calendar being quiet, the analysis indicates that the GBP/USD has managed to reclaim some lost ground as it tests prior support levels, with resistance at key levels that may impact future trading. As the US economy is ahead of the UK, it pushes back the anticipated start of rate cuts in the US, adding an element of uncertainty to the market.

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