GBP/USD Price Analysis: 200-DMA defends bulls inside triangle, UK employment eyed

  • GBP/USD struggles to keep the rebound from 200-DMA, edges higher of late.
  • Firmer Momentum above the key moving average keeps buyers hopeful.
  • Key Fibonacci retracement levels hint at a bumpy road to the north.
  • UK jobs report needs to flash positive numbers to recall BOE hawks.

GBP/USD repeats the old tunes above 1.3800, remains sidelined around 1.3840 during Tuesday’s Asian session. In doing so, the cable pair seesaws inside a seven-week-old symmetrical triangle.

It should be noted, however, that the quote ability to stay above 200-DMA as it inches closer to the breakout keeps buyers hopeful. Also backing the upside hopes is the firmer Momentum line.

Fundamentally, expectedly weaker Claimant Count figures for August and sifter ILO Unemployment Rate for three months to July should help the Bank of England (BOE) policymakers to reiterate their bias, which has been absent of late. The same should favor the GBP/USD bulls.

That said, a clear upside break of the triangle’s resistance line, near 1.3865 becomes necessary to favor the bulls. Also acting as strong resistances are the 50% and 61.8% Fibonacci retracement (Fibo) levels of June-July downside, respectively around 1.3910 and 1.3990.

Meanwhile, a convergence of 38.2% Fibo level and 200-DMA, near 1.3830, restricts the pair’s short-term downside, a break of which will drag the GBP/USD prices towards the support line of the stated triangle close to 1.3760.

Read: GBP/USD Forecast: Sterling rejected at resistance, long list of worries could send it lower

GBP/USD: Daily chart

Trend: Grinds higher

Additional important levels

Today last price 1.384
Today Daily Change 0.0004
Today Daily Change % 0.03%
Today daily open 1.3836
Daily SMA20 1.3767
Daily SMA50 1.3807
Daily SMA100 1.3917
Daily SMA200 1.3825
Previous Daily High 1.3889
Previous Daily Low 1.3827
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3865
Daily Fibonacci 61.8% 1.3851
Daily Pivot Point S1 1.3813
Daily Pivot Point S2 1.3789
Daily Pivot Point S3 1.3751
Daily Pivot Point R1 1.3874
Daily Pivot Point R2 1.3912
Daily Pivot Point R3 1.3936



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD drifts down toward 1.17 as mood worsens

EUR/USD is trading closer to 1.17, off the highs. Concerns about Chinese giant Evergrande's troubles return to weigh on sentiment, supporting the safe-haven dollar ahead of the PBOC and Fed meetings on Wednesday. 


GBP/USD falls toward 1.3650 on fresh dollar strength

GBP/USD is retreating back toward 1.3650 as the dollar reasserts itself. Fears that the crisis in China's Evergrande could turn into a more significant downturn have resumed. Central bank decisions are awaited.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Alts rebound while Bitcoin tends to its wounds

Bitcoin price suffered a brutal setback as it dropped from being extremely close to a crucial psychological level to slicing through a stable support floor.

Read more

PBoC September Preview: Will policymakers step in to ease Evergrande fears?

People’s Bank of China (PBoC) will announce monetary policy decisions on September 22. Financial markets remain restless amid ongoing Evergrande crisis. PBoC could lower RRR further to support economy. 

Read more