Caution: Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognise that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. HowToTrade.com does not guarantee the profitability of trades executed on its systems. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of using our servers or advice on forex related products on this website.
Expand Offer

Save $228 on our Trade Together program, paid for by our partner.

Learn More

Save $228 on our Trade Together program, paid for by our partner.

Learn More

GBP/USD Price Analysis – Price Ranges in Anticipation of Core PCE Data

  • 3 mins read ●
  • Published:
gbp usd

The pair holds steady around 1.2640 ahead of PCE data and other economic reports. Short-term resistance at 1.27093 remains intact. 

Key Points

  • The GBP/USD lost 0.19% of its value yesterday, breaking its 6-day bullish streak.
  • Key economic reports, including the US PCE, initial Jobless Claims, and Chicago PMI, may impact the pair’s price. 
  • In the short term, investors will pay close attention to 1.26721 and 1.27093 resistance levels.

GBP/USD Daily Price Analysis – 29/02/2024

The GBP/USD broke its 6-day bullish streak yesterday, losing 0.19% to close at $1.26615. At the time of writing, the price has only risen by 0.06%, currently trading at $1.26687 as we await US PCE data.

Recent inflation reports have caused economists and analysts to delay the timing of rate cuts so far, and as a result, the greenback is strengthening versus most currencies. Yet, the President of the New York Fed, Jon Williams, said in his speech yesterday that interest rate cuts are still possible this year. We’ll be looking at the PCE report today for more guidance on the inflation cut saga from the U.S. 

Across the Atlantic, the BoE has also maintained a hawkish stance over interest rates. On Tuesday, Dave Ramsden, the BoE Deputy Governor, said he isn’t considering rate cuts until inflation eases. 

On the technical front, the RSI hovers around the midpoint, and the 50-EMA is flat. These are signs of a ranging market. Sure enough, the price has struggled to get past the $1.25184 low and the $1.27724 high since the 6th of Feb.

gbp usd daily chart
GB/USD Daily Chart – 29/02/2024

GBP/USD Technical Analysis – 29/02/2024

Tracing our Fibonacci retracement tool from the $1.25354 low to the minor swing high of $1.27096, we see some crucial levels that have developed on the chart. The first among them is the $1.26721 resistance level, which coincides with the 0.786 retracement level on the Fibo. This level has proven to be a resilient ceiling for the price on the hourly chart, and it’ll be interesting to see how the price reacts around it in the near future. 

A break above this strong resistance level could see the price first attempt to clear out the $1.26994 resistance level just farther away. And if this resistance cracks too, the $1.27093 high is the next target for the bulls. 

The bears will hope the $1.26721 level continues to hold the price. If the price falls to the $1.26428 support level and breaks below it, the following support levels are $1.26223, $1.26018, and $1.25764.

gbp usd 1h chart fib
GB/USD 1H Chart – 29/02/2024

Key Economic Data and News to be Released Today

The January data from the United States core Personal Consumption Expenditure Price Index (PCE) will be released today at 8:30 GMT-5. The forecast from analysts is 0.4%. If it comes out better than this, the Greenback stands to benefit, potentially causing the GBPUSD to dip. 

We’ll also get the release of the Initial Jobless Claims and the Chicago PMI data from the North American country today. 

Visit Our Economic Calendar

GBP/USD Key Fibonacci Price Levels 29/2/2024

Based on the 1hr chart, the key standard pivot point levels for the GBPUSD are these:

SupportResistance
1.264281.27093
1.26223
1.26018
1.25764

Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.

Trade Like a Predator Hunt for Opportunities

Sign up now for FREE access to our exclusive trading strategy videos. Want more? Explore our Trade Together program for live streams, expert coaching and much more.

Here’s what you’ll get:

Identifying high probability scalping setups
When to scalp and when to stay out
Precise entries and exits
Position sizing and risk management
HTT Piranha Strategy Course thumbnail
By clicking the 'Learn Free Now' button you agree to our Terms of Service and Privacy Policy
HTT Connor, arms crossed

In partnership with our recommended partner SwitchMarkets partnering broker logo

Wait!

1Register with Switch Markets.
2Verify your identity.
3Unlock Trade Together program for free!
Learn More

"Join our Trade Together program and interact with us in real-time as we trade the markets together."

HowToTrade Coaches