GBP/USD is back above 1.2700

Source: Dukascopy Bank SA


The publication of the US Federal Reserve Meeting Minutes has reminded the world that the Fed is debating a reduction of interest rates and a stop to the reduction of the central bank's balance sheet. The reminder caused a decline of the US Dollar's value.

In combination with the strong support of the 1.2590/1.2610 range, the fundamental event caused a surge of the GBP/USD currency exchange rate. By mid-Thursday, the pair had passed above the 50, 100 and 200-hour simple moving averages, the weekly simple pivot point and the 1.2700 mark.

The ongoing recovery of the Pound against the US Dollar could face resistance near the 1.2800 mark. Near that level there is a high level zone at 1.2780/1.2795, the weekly R1 simple pivot point at 1.2812 and the August high level at 1.2819. Note that these levels were pierced during the end of the year decline of the Dollar.

On the other hand, a decline of the pair could be slowed down by the 100 and 200-hour simple moving averages near 1.2700. Below 1.2700, the weekly simple pivot point and the 50-hour SMA might act as support near 1.2650. If these levels fail to stop a decline, the 1.2590/1.2610 is expected to once again impact the pair.
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