GBP/USD sees cushion around 1.2180 amid subdued DXY, BOE policy in focus

  • GBP/USD is likely to find support around 1.2180 as DXY is expected to drop further.
  • The BOE is expected to increase interest rates by 5 basis points (bps) this week.
  • An underperformance is expected from the US NFP as US techs have halted their recruitment process.
The GBP/USD pair has witnessed a minor pullback after hitting a high of 1.2198 in the Asian session. The asset is likely to find a cushion of around 1.2180 as investors are expecting one more rate hike by the Bank of England (BOE) this week. The BOE is likely to elevate its interest rates by 25 basis points (bps) as the downbeat UK economic situation is not supporting the BOE to go all in and elevate interest rates with a higher rate extent unhesitatingly. The major catalysts which are restricting the BOE to elevate interest rates is the lower Average Hourly Earnings data.
Price pressures are soaring in the UK economy. The inflation rate has reached to 9.4% and has not displayed any exhaustion signals yet. Therefore, the market participants are expecting that the inflation rate could punch the two-digit figure. In times when inflation is soaring, earnings by the households have tumbled and more rate hikes could trim job opportunities significantly. Meanwhile, the US dollar index (DXY) is likely to extend losses if the asset drops below Monday’s low at 105.63. This week, the release of the US Nonfarm Payrolls (NFP) holds significant importance. As per the market consensus, the US economy has added 250K jobs in the labor market against the prior release of 372k. A downbeat performance is expected from the economic data as various US tech companies have halted their recruitment process. Also, the Unemployment Rate is seen stable at 3.6%.


Today last price1.2186
Today Daily Change0.0007
Today Daily Change %0.06
Today daily open1.2179
Daily SMA201.1994
Daily SMA501.2223
Daily SMA1001.2525
Daily SMA2001.2989
Previous Daily High1.2246
Previous Daily Low1.2063
Previous Weekly High1.2246
Previous Weekly Low1.196
Previous Monthly High1.2246
Previous Monthly Low1.176
Daily Fibonacci 38.2%1.2176
Daily Fibonacci 61.8%1.2133
Daily Pivot Point S11.2079
Daily Pivot Point S21.198
Daily Pivot Point S31.1896
Daily Pivot Point R11.2262
Daily Pivot Point R21.2346
Daily Pivot Point R31.2445