FxWirePro: GBP/USD rallies above 1.2540 but reversal is likely
GBP/USD rose on Thursday as growing concerns over the outcome of French presidential elections and sharp decline in US dollar helped the British pound. Much of the move was due to a broad selloff in the U.S. dollar after…
GBP/USD rose on Thursday as growing concerns over the outcome of French presidential elections and sharp decline in US dollar helped the British pound.
Much of the move was due to a broad selloff in the U.S. dollar after overnight Federal Reserve policy meeting dampened expectations of an interest rate hike in March.
The minutes of the Jan. 31-Feb. 1 discussion, showed the U.S. central bank voted to keep rates unchanged, also showed the depth of uncertainty at the Fed because of a lack of clarity on the new Trump administration's economic program.
Further upside for this pair is expected to be limited as strong resistance level at 1.2633 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2558, a break above this level would expose the cable to next resistance level at 1.2600 levels.
To the downside strong support can be seen at 1.2484, a break below at this level will open the door towards next level at 1.2425.
