GBP – Pound Sterling is experiencing resistance and is pulling back

GBP/USD continued to be under pressure after last Thursday's interest rate meeting, falling to 1.4372 on Friday. The Bank of England cut interest rates to 4.5% and said the UK economy would grow by just 0.75% this year, half the pace previously expected.

As can be seen from the technical chart, the RSI and stochastic index fell again, and the pound may continue to fall against the U.S. dollar. The nearest support is 1.2350 and 1.2220, and then 1.2150. The key support continues to be based on the 1.20. In terms of resistance, if calculated based on the cumulative decline since December, a 61.8% rebound would be at 1.2540, which is close to last Wednesday's high. The larger resistance levels are expected to be 1.26 and 1.27, and the key will point to the 250-day moving average of 1.2760 and even the high of 1.2811 in December last year.

Forecast range:
Resistance 1.2540 – 1.2600 – 1.2700 – 1.2760 – 1.2811
Support 1.2350 – 1.2220 – 1.2150 - 1.2000**

Any questions? contact our professional analysis team