GBPUSD price action remains choppy yet bullish, holding above key support levels at 1.2922 and the 100-hour moving average. This week, the pair has fluctuated around the 61.8% retracement of the September 2024 decline, located at 1.2922.
In today’s trading session, the pair tested this level, moving above and below it during Asian and early European hours. Softer US CPI data led to a peak at 1.2988, but momentum faded, resulting in a pullback that found support at 1.2922.
Technical Analysis Overview
The hourly chart shows recent dips stalled ahead of the rising 100-hour moving average, indicating bullish signs. Post-CPI, the retracement has remained just above the 61.8% level, reinforcing the dominance of buyers.
As long as the 1.2922 retracement and the 100-hour moving average at 1.2912 serve as support, the bullish outlook remains. Upcoming targets include the psychological level at 1.3000 and the swing area between 1.3044 and 1.3058 on the 4-hour chart. A sustained move above these levels would bolster the bullish scenario, while a breach below key support would shift dynamics towards sellers.
The analysis highlights GBP/USD’s choppy price movement while maintaining an overall bullish structure. The pair continues to find buyers at key levels, particularly near 1.2922, which corresponds to the 61.8% retracement of last September’s decline. The 100-hour moving average, currently situated at 1.2912, further reinforces this floor.
On several occasions today, the currency pair has moved above and below 1.2922, particularly during Asian and early European trading hours. The release of softer-than-expected US inflation data provided temporary strength, pushing prices to 1.2988. However, buying interest faded, resulting in a measured pullback that still found support at 1.2922. The absence of a deeper retracement suggests underlying demand remains intact.
On the hourly chart, the pattern remains constructive. Each dip has been shallow, with declines consistently stalling before reaching the rising 100-hour moving average. This behaviour points to firm buying pressure. Since the inflation report, the retracement has held above key support, reinforcing the idea that buyers still dictate short-term direction.
Key Levels To Watch
As long as the price remains supported at 1.2922 and above the 100-hour moving average, the bias leans towards the upside. The next resistance sits at 1.3000, a round figure that may act as a hurdle. Beyond that, price action will be watching the area between 1.3044 and 1.3058, where prior selling interest emerged. A decisive break through this zone would indicate growing momentum in favour of further gains.
However, any sustained move below 1.2922, particularly if accompanied by a break below the 100-hour moving average, would alter the structure. Such a move would suggest sellers are regaining control, raising the possibility of retesting levels beneath recent lows. Until that occurs, the advantage remains with those who have been driving the pair higher.
