On Tuesday (February 18th) during the European trading session, the pound fell slightly. With the basic end of the adjustment of the US dollar, the US dollar began to rebound against other currencies of the Group of Ten countries.

In terms of the pound, the report on UK employment today exceeded expectations, which will put the Bank of England in an uncomfortable position given high wage growth and sticky inflation. The market pricing has not changed much, and it is expected that there will still be a loose policy of 55 basis points by the end of the year.

Today, the United States and Russia will hold talks in Saudi Arabia, and positive news may benefit risk sentiment and suppress the US dollar.

technical analysis

After bottoming out, the GBP/USD started a new round of upward trend, breaking through the resistance levels of 1.2450 and 1.2500.

From the 4-hour chart, the currency pair remains stable above the 1.2550 level, the 100 cycle simple moving average, and the 200 cycle simple moving average. The currency pair even tested the 1.2630 range before a slight correction.

On the downside side, the immediate support level is around 1.2515, close to the 38.2% Fibonacci retracement level of the upward trend from the low of 1.2332 to the high of 1.2630.

The next key support level is around 1.2550, which is the 61.8% Fibonacci retracement level for the upward trend from the low of 1.2332 to the high of 1.2630. The main support level may be at 1.2400. A key bullish trend line has also formed on the same chart, with support at 1.2400.

If it falls further, the currency pair may drop to the level of 1.2250. On the upside side, the currency pair seems to be facing resistance around 1.2630. The next major resistance level is around 1.2665. At present, the main resistance level is formed around the 1.2750 range.

If the closing price is above the level of 1.2750, it may set the tone for a new round of gains. In this case, the currency pair may even break through the resistance level of 1.2800.

Looking at the EUR/USD, the currency pair has started a moderate upward trend above 1.0450, but bears remain active near the resistance level of 1.0520.