GBP is one of the best performing G10 currencies today. There were no data releases from the United Kingdom scheduled for today but there were some comments from UK officials that may be considered hawkish. Most of all, UK Prime Minister Sunak said that monetary and fiscal policy will be fully used on inflation. Those comments provided some support for GBP. However, the upward move on GBP market was halted in the afternoon. Let's take a look at the situation on GBPUSD.
Taking a look at the chart at H1 interval, we can see that the pair managed to test the upper limit of a local market geometry in the 1.2737 area but failed to break above hinting that the downtrend is still in play. Pair started to pull back later on and is now testing a recently-broken resistance zone marked with 50% retracement of the downward impulse launched in mid-June 2023. Should we see a break below, declines may deepen towards the support zone ranging between 38.2% retracement and 1.2700 mark, where 50- and 200-hour moving averages can also be found.
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GBPUSD at H1 interval. Source: xStation5
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