GBP/USD Outlook: Initial bullish signal on close above 10SMA but larger bears would be sidelined by lift above 20SMA
|Cable ticked higher in early European trading on Tuesday and probes above key barrier provided by falling 10SMA (1.2641), which limits upside attempts since 13 Nov and maintains bearish short-term bias.
Fresh near-term bullish sentiment is supported by expectations that Fed would dovish on Wednesday’s policy meeting, amid concerns about global growth slowdown, as well as strong criticism from President Trump about the pace of rate hikes.
Close above 10SMA would generate initial bullish signal, while extension and close above 20SMA would provide relief.
On the other side, growing bearish momentum on daily chart warns that recovery may stall under next key points at 1.2686 (13 Dec high, where recovery from new 20-month low at 1.2476 stalled) and 1.2711 (falling 20SMA).
Return and close below 10SMA would weaken near-term tone and keep overall bears intact.
Res: 1.2662; 1.2686; 1.2711; 1.2782
Sup: 1.2609; 1.2564; 1.2528; 1.2476
Interested in GBPUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.