On the daily chart below for GBPUSD, we can see that after a long struggle at the 1.2444 resistance, price broke out and rallied to the 1.27 handle. As we got another hot US NFP report though, the price started to top out and eventually reversed as more good US data started to come in.

Since the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term hinted to a pause at the last FOMC meeting but left the door open for another hike in case the data remains strong, the market is now pricing in a higher chance of such a scenario.

The GBPUSD price is now falling below the key 1.2444 resistance and the moving averages have crossed to the downside signalling that the trend is changing. Moreover, the divergence with the MACD may hint to an upcoming big reversal with the 1.1839 support as the ultimate target.

GBPUSD Technical Analysis

On the 4 hour chart below, we can see that GBP/USD has now returned back within the range around the 1.2444 resistance. The whole move up since the 1.20 level has diverged with the MACD, so a break below the bottom of the range should further confirm a big move to the downside. The problem here is that the price is now diverging into the bottom of the channel, so we might first get a bigger pullback probably into the top of the range before an eventual breakout.

On the 1 hour chart below, we can see that the price action is a bit messy and compressed as we approach the bottom of the range at 1.2350. This setup looks like a falling wedge, and it makes it harder to identify clear support and resistance levels. Nonetheless, we have two swing levels that should be barometers for the next move.

On the upside, if the price breaks above the 1.2470, GBP/USD is likely to rally to the 1.2530 resistance. On the downside, a break below the 1.2410 level should lead to a fall towards the 1.2350 support. Today, we have the US PMIs. A beat should lead to more USD strength and easily get us to the 1.2350 support, while a miss should offer a bigger pullback and take us to the 1.2530 resistance.