GBPUSD Technical Analysis – A possible fakeout points to more upside

<p>US:</p><ul><li>The Fed <a href="https://www.forexlive.com/centralbank/federal-reserve-interest-rate-decision-25-bps-rate-hike-to-525-550-20230726/">hiked by 25 bps</a> as
expected and kept everything unchanged.</li><li>Fed Chair Powell reaffirmed their data dependency
and kept all the options on the table.</li><li>The US economic data keeps on surprising to the
upside, but inflation expectations and CPI readings continue to show
disinflation with the last two <a href="https://www.forexlive.com/news/us-june-cpi-02-mm-versus-02-mm-expected-20230810/">Core CPI M/M</a> figures
coming in at 0.16%. </li><li>The <a href="https://www.forexlive.com/news/us-august-sp-global-services-flash-pmi-510-vs-522-expected-20230823/">US PMIs</a> missed
expectations across the board last week, while the US Jobless Claims remained
solid. </li><li>Fed Chair Powell’s speech at the <a href="https://www.forexlive.com/news/jackson-hole-roundup-what-did-the-central-banksters-say-20230828/">Jackson Hole Symposium</a> was
mostly in line with what he said previously but he stressed on the need to be
careful going forward and that continued strength in the labour market may
require further rate hikes. </li><li>At the moment, the market doesn’t expect another
hike from the Fed, but the next NFP and CPI data will be crucial to confirm or
change this view. </li></ul><p>UK:</p><ul><li>The BoE hiked by 25 bps as expected.
</li><li>The central bank seems to be leaning
more on the less hawkish side as a key line in the statement was tweaked to
indicate the propensity for a “higher for longer” stance rather than keeping
with additional rate hikes. </li><li>Recent key economic data like the
latest <a href="https://www.forexlive.com/news/uk-july-payrolls-change-97k-vs-9k-prior-20230815/">employment report</a> showed even more wage growth
despite the unemployment rate ticking higher again, and the <a href="https://www.forexlive.com/news/uk-july-cpi-68-vs-68-yy-expected-20230816/">UK CPI</a> beat expectations pointing to stagflation. </li><li>The <a href="https://www.forexlive.com/news/uk-august-flash-services-pmi-487-vs-510-expected-20230823/">UK PMIs</a> missed expectations across the board with the
Services sector plunging into contraction.</li><li>The market expects the BoE to hike
by 25 bps in September.</li></ul><p>GBPUSD Technical Analysis –
Daily Timeframe</p><p>On the daily chart, we can see that GBPUSD has
probed below the key <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">support</a> zone
around the 1.2593 level but eventually turned around to get back above the
level. The trend remains clearly bearish as the price has been printing lower
lows and lower highs and the <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving averages</a> are
crossed to the downside. We will need to see the pair rising above the 1.28
handle to confirm a new uptrend. </p><p>GBPUSD Technical Analysis –
4 hour Timeframe</p><p>On the 4 hour chart, we can see that GBPUSD has
been stuck in a range between the 1.26 support and the 1.28 resistance for
almost the entire month. Last week we got the breakout, but the pair moved
quickly back within the range leaving behind a fakeout. These are generally bullish
signals so we can expect the buyers piling in here targeting the 1.28
resistance. </p><p>GBPUSD Technical Analysis –
1 hour Timeframe</p><p>On the 1 hour chart, we can see that we
have the last lower high at the 1.2654 level. The sellers are likely to step in
there with a defined risk above the level and target another break below the
support. The buyers, on the other hand, will need to break above the 1.2654 level
to change the bearish short term trend into a bullish one and target the 1.28
resistance. </p><p>Upcoming Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">This week</a> is an important one given that we will see
many key labour market data for the US, including the NFP, before the next FOMC
meeting. Today, we have the US Consumer Confidence and the US Job Openings
reports. Tomorrow, we have the US ADP report. Moving on to Thursday, we will
see the US Jobless Claims and the US PCE data. Finally, we conclude the week
with the US NFP and the ISM Manufacturing PMI on Friday. Although the Fed keeps
all the options on the table, it’s also leaning more towards a pause in September,
so we will need strong data to make the market to expect a hike at the upcoming
meeting. </p><p>See also the video below</p>

This article was written by FL Contributors at www.forexlive.com.