The British Pound (GBP) struggled on Thursday after the Bank of England (BoE) cut interest rates by 25 basis points, with two members even pushing for a more significant 50-point cut, causing the GBPUSD pair to drop below 1.2400. However, the pair recovered and stabilized above this level by Friday morning. Meanwhile, the US job report showed that Nonfarm Payrolls (NFP) rose by 143,000 in January, falling short of the expected 170,000, which could increase speculation about a potential Federal Reserve (Fed) rate cut in March. If traders expect the Fed to lower rates, the US Dollar may weaken, allowing GBPUSD to rise. Investors will continue watching economic data and central bank statements to determine the next move for the currency pair.
GBPAUD – D1 Timeframe
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Given the bullish array of moving averages and the price currently approaching the 100-period moving average support on the daily timeframe chart of GBPAUD, we can expect a bullish outcome. That’s not all, though. The demand moving average support enjoys confluence from a demand zone, the 88% Fibonacci retracement level, and trendline support.
GBPAUD – H4 Timeframe
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On the 4-hour timeframe chart of GBPAUD, the demand zone is much more precise; the previous high and the area of inefficiency are also visible. A rejection from the highlighted area of demand would confirm a bullish impulse.
Analyst’s Expectations:
Direction: Bullish
Target: 2.01648
Invalidation: 1.94940
CONCLUSION
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