Pound Sterling Price News and Forecast: GBP/USD continued showing some resilience below the very important 200-day SMA
|GBP/USD surrenders intraday modest gains, turns flat around 1.2725 region
The GBP/USD pair spiked to fresh session tops, around the 1.2780 region in the last hour, albeit lacked any strong follow-through and quickly retreated few pips thereafter.
Having shown some resilience below the very important 200-day SMA, the pair managed to attract some buying interest on Thursday and shot to two-day tops during the mid-European trading session. The British pound got a minor lift after the UK finance minister, Rishi Sunak announced the new jobs support scheme.
GBP/USD: The downside pressure is still present for Cable
A second day of closing breach of 1.2760 shows that the downside pressure is still present for Cable. The market may have only closed marginally lower on the session, but the outlook remains corrective. This is backed up by negatively configured momentum indicators which suggest that near term rallies are a chance to sell now. The downtrend of the past three weeks falls at 1.2860 today. We look for pressure towards the next key support area around 1.2650 (old key breakout levels) but any failed move into the area between the old 1.2760 support and the downtrend at 1.2860 looks to be a chance to sell.
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