GBPUSD – Minimal Downside Impact from BOE Rate Cut

Cable traded erratically with only a minor decline following the BOE rate cut but regained momentum after US jobless claims came in much higher than expected.

The pair bounced back above the 1.2800 mark after dropping to a nearly one-month low of 1.2750. This rebound suggests a potential bear trap on the daily chart, which had previously broken below the Fibo support at 1.2779, reinforced by the 55DMA.

This rebound might signal the beginning of a reversal pattern, but further confirmation is needed. A close above the 20DMA at 1.2888 would be required to validate this potential signal.

Until then, the downside remains susceptible as negative momentum on the daily chart continues to build. Watch for clearer direction based on a break of either pivot level: 1.2779 or 1.2888.

Upcoming US Manufacturing PMI data today and the Labor report on Friday are expected to offer fresh insights.

Res: 1.2830; 1.2873; 1.2888; 1.2943
Sup: 1.2779; 1.2750; 1.2706; 1.2683