Pound Sterling Price News and Forecast: GBP/USD clings to 200-day EMA in search of further upside
|GBP/USD Price Analysis: Clings to 200-day EMA in search of further upside
GBP/USD seesaws around 1.2580/92, currently near 1.2589, amid the initial Asian session on Thursday. In doing so, the Cable takes rounds to 200-day EMA after posting a positive daily close the previous day. Even so, the pair’s successful recovery from 50-day EMA suggests further upside amid upbeat RSI conditions.
Hence, bulls can keep the monthly high of 1.2670 on the cards with 1.2600 acting as immediate resistance. However, the quote’s further upside needs validation from 1.2700 to attack the June month’s peak of 1.2813.
If sellers wish to enter, they should wait for a downside break below June 24 high of 1.2543. In doing so, the 50-day EMA level of 1.2489 can become an immediate target.
GBP/USD Forecast: Sellers aligned around 1.2660
The GBP/USD pair surged to 1.2649, amid a combination of risk-appetite and encouraging UK data. According to the Office of National Statics, inflation picked up in June to 0.6% YoY, beating the expected 0.4%. Still below BOE’s 2% target, the uptick in inflation is surely a positive sign of an economic recovery. Also, the Producer Price Index in the mentioned month declined by 0.8% YoY, better than the -1.1% anticipated. The pair, however, gave up most of its intraday gains to settle with modest gains in the 1.2580 price zone, as retreating equities supported a dollar’s comeback.
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