GBP/USD Price Analysis: Cable finds support at 20-EMA around 1.1600
|- Cable bulls are eyeing more upside after a time correction to near the 20-EMA around 1.1600.
- The market mood seems still upbeat despite a rise in returns from US government bonds.
- The RSI (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.
The GBP/USD pair has overstepped the immediate resistance of 1.1600 in the Asian session amid a subdued performance by the US dollar index (DXY). The DXY is performing lackluster in a limited range ahead of the monetary policy decision by the Federal Reserve (Fed).
Meanwhile, the risk-on impulse still seems solid despite an expansion in 10-year US Treasury yields to 4.05%. S&P500 futures have extended their losses to 0.3% after registering 4% weekly gains.
On a four-hour scale, pound bulls have displayed a perpendicular rally after a breakout of the symmetrical triangle chart pattern. The upward-sloping trendline of the chart pattern was placed from October 12 low at 1.0924 while the downward-sloping trendline was plotted from October 5 high at 1.1496.
The asset has rested after a sharp upside move to near the 20-period Exponential Moving Average (EMA) at 1.1580, which is providing a bargain opportunity to the market participants for the execution of longs. Also, the 50-period Exponential Moving Average (EMA) at 1.1400 is advancing, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates more upside ahead.
Going forward, a decisive break above Thursday’s high at 1.1640 will send the cable towards September 13 high at 1.1732, followed by the round-level resistance at 1.1900.
On the flip side, a downside below the round-level support of 1.1400 will drag the asset toward Tuesday’s low at 1.1269. A slippage below the latter will drag the cable towards a two-week low at 1.1060.
GBP/USD four-hour chart
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.