Pound Sterling Price News and Forecast: GBP/USD staged a goodish intraday recovery from the 200-DMA support
|GBP/USD: The hourly chart shows a decisive move above 1.2860 is needed to improve now
The technical rally has been faltering around 1.3000 in recent days as the overhead supply between 1.2980/1.3050 has been a barrier to recovery. Yesterday’s sharp retreat once more reflects the lost control of the Cable bulls and the market is on the brink of turning decisively corrective now. The support that formed at 1.2760 is key because if there is a closing breach, it would signal 1.3005 being a key lower high as part of a new technical downtrend. It would open 1.2650 initially as the next key test, being the bottom of the old breakout levels of the old April to July ceiling. A failure of this support would open a much deeper correction, towards 1.2480 and possibly 1.2250.
GBP/USD retreated over 50 pips from daily tops, back near 1.2800 mark
The GBP/USD pair jumped back above mid-1.2800s during the mid-European session, albeit lacked any strong follow-through buying and quickly retreated over 50 pips from daily tops.
The pair witnessed some aggressive short-covering move from the vicinity of the 1.2700 mark – nearing the very important 200-day SMA – after the BoE Governor Andrew Bailey downplayed expectations of negative interest rates. The strong intraday recovery movement got an additional boost from positive Brexit-related headlines. EU source reportedly said that Brexit talks have been going a bit better than expected and that there is a 'window of opportunity'.
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