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GBPUSD Quotes have Renewed the August Maximum

12/5/2022 2:08 PM

Due to the weakening of the American currency, the GBP/USD pair renewed the August high of 1.2260, waiting for new drivers to move.

Despite the strong statistics on the US labor market published last Friday, the dollar fell against most competitors. Thus, the increase in the number of new jobs was recorded around 263.0K, better than experts' expectations of 200.0K, and the October value was revised from 261.0K to 264.0K, while the unemployment rate in November remained at the same level in 3.7%, justifying the forecast. Despite the "hawkish" rhetoric of the US Federal Reserve, positive macroeconomic indicators allow the regulator to raise interest rates further. However, investors are likely still influenced by the speech of the head of the department, Jerome Powell, during which the official directly indicated that the pace of monetary tightening would be slowed down already at the next meeting on December 14.

The pound is supported by the growth of Manufacturing PMI up to 46.5 points against preliminary estimates of 46.2 points. Today at 11:30 (GMT+2), data on the composite index was also presented, which remained at the previous month's level of 48.2 points, while the service PMI was 48.8 points. Nevertheless, despite the poor dynamics of macroeconomic indicators, the growth potential of the GBP/USD pair to the 1.2400 area remains high.

The long-term trend is upwards. Within its framework, the trading instrument rose to 1.2260 and renewed the August high, and now the next target for quotes is 1.2400, in case of a breakout of which the movement will continue to the area of 1.2655. The key support is shifting to 1.1640, and as long as the quotes are above it, it is worth opening long positions.

The medium-term trend is upwards. Last week, the traders broke through target zone 5 (1.2111–1.2075), and the next target will be zone 6 (1.2471–1.2435). The key support is shifting to the area of 1.1896–1.1851, and if the price corrects to this area, then it will be possible to consider new purchases with the target at 1.2340.

Resistance levels: 1.2400, 1.2655. | Support levels: 1.1900, 1.1640.

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