- GBP/USD snaps three-day uptrend, as 1.3768 remains a tough nut to crack.
- Firmer yields, US dollar recall cable sellers, as Bailey’s comments ignored.
- Will GBP/USD yield a symmetrical triangle breakout on the 1D chart?
GBP/USD has faced rejection once again near the 1.3770 region, with the bears now fighting back control, dragging the rates lower towards 1.3700.
In doing so, the cable turns into the red zone for the first time in four trading sessions, retreating from four-week highs reached last Friday.
The latest leg down in the spot could be mainly associated with the rebound in the US dollar across the board, as the Treasury yields extend the American Retail Sales blowout-inspired rally amid increasing hawkish Fed’s expectations.
Further, adding to the downside in the spot is the looming Brexit concerns, with the European Union (EU) states growing weary of the Northern Ireland (NI) Protocol, Brexit and the UK bad faith.
The dynamics in the yields and the greenback will continue to have a significant bearing on the cable ahead, in absence of relevant UK/US macro data.
From a near-term technical perspective, the price has stalled the upside at the symmetrical triangle resistance of 1.3768.
A daily closing above the latter will confirm the upside break from the triangle, calling for a fresh run towards 1.3800. The next bullish target is seen at the downward-sloping 100-Daily Moving Average (DMA) at 1.3814.
The 14-day Relative Strength Index (RSI) holds above the midline, keeping the buyers hopeful.
GBP/USD: Daily chart
Alternatively, 50-DMA at 1.3716 offers immediate support to the pair, below which a sharp drop towards 1.3625 cannot be ruled out.
That level is the confluence of the 21-DMA and rising trendline (triangle) support.
GBP/USD: Additional levels to consider
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.