The GBP/USD pair has witnessed a surge in the Asian trading hours following the Federal Reserve's (Fed) decision to keep interest rates steady. As the US Dollar weakened, the pair now trades around 1.2184, marking a 0.28% gain for the day. Forex traders are closely monitoring the aftermath of the Fed meeting, which has left the possibility of rate hikes uncertain.
From a technical standpoint, GBP/USD displays promising signs. It currently remains above both the 50- and 100-hour Exponential Moving Averages (EMAs) on the one-hour chart. The Relative Strength Index (RSI) sits comfortably above the 50 mark in bullish territory, indicating that buyers maintain control for the time being. Forex traders should take note of these technical indicators, suggesting further upside potential.
The critical resistance level to watch is the 1.2200–1.2210 region, marked by a combination of factors including a psychological round mark, the upper boundary of the Bollinger Band, and a low from October 31. A breakthrough could lead to a rally toward the high of October 16 at 1.2218, and potential further milestones at 1.2288 and 1.2300. On the flip side, initial support can be found near the 100-hour EMA at 1.2147, with further downside levels at 1.2119 and 1.2095–1.2100.
Regarding intraday performance, the latest recorded price for today is 1.2182, reflecting a daily change of 0.26%. Notably, the daily Simple Moving Averages (SMA) provide valuable metrics for traders, featuring figures of 1.2184 for SMA20, 1.2317 for SMA50, 1.2557 for SMA100, and 1.2436 for SMA200. These trend indicators offer valuable guidance for Forex traders when making crucial decisions.
In the dynamic world of Forex trading, the GBP/USD pair's recent movements are influenced by factors such as central bank decisions, economic indicators, and geopolitical events. Traders are closely monitoring the Fed's policies and their impact on the US Dollar, as well as technical signals, to make informed decisions. The GBP/USD pair's interactions with key levels and moving averages are essential considerations for those looking to navigate the Forex market effectively.