GBPUSD is retreating somewhat after the pullback off the 33-month high of 1.3745 in the preceding week. Currently, the pair is flirting with the 20-day simple moving average, remaining well above the long-term uptrend line, which has been holding since May 2020.
Technically, the RSI indicator is pointing slightly lower in the positive territory as well as the stochastic oscillator, which posted a bearish crossover within the %K and %D lines below the overbought zone. However, the red Tenkan-sen line is still hovering above the blue Kijun-sen line, indicating more gains.
Should selling forces strengthen, the 40-day SMA at 1.3510 is coming next ahead of the 1.3435 support, which overlaps with the Ichimoku cloud and the ascending trend line. A break below these obstacles could open the door for a neutral bias, resting around the 38.2% Fibonacci retracement level of the up leg from 1.1405 to 1.3745 at 1.3180. Clearing this level too, the 200-day SMA at 1.2940 could come in the spotlight.
Alternatively, a close above the multi-month peak of 1.3745 will brighten the boarder outlook, pushing the price towards the 1.4345 key level, which has been tested during the January 2018 period.
In brief, GBPUSD is facing a weakening bullish bias in the very short-term, where a drop below the rising trend line is expected to enhance selling interest.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.