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
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Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
