GBP/USD Price Analysis: 200-HMA defends Cable buyers around 1.2700, US/UK statistics eyed

GBP/USD bounces off 200-HMA to pare Wednesday’s losses, lacks clear directions of late.
UK/US PMIs, US ADP Employment Change decorate the calendar.
Steady RSI, sluggish MACD signals keep Cable buyers on the table.
Three-week-long horizontal region appears strong upside hurdle; Pound Sterling bears aim for 1.2660 after 200-HMA break.

Anil Panchal FXStreet

GBP/USD picks up bids to reverse the latest daily losses while defending the 1.2700 round figure as it prints the 1.2705 mark amid the early hours of Thursday’s Asian session. In doing so, the Cable pair bounces off the 200-Hour Moving Average (HMA).

Also read: GBP/USD drops below 1.2700 post FOMC minutes release

It’s worth noting that the Pound Sterling’s latest rebound from the key moving average justifies the steady RSI (14) line, as well as sluggish MACD, which in turn suggests the pair’s another attempt to cross a downward-sloping resistance line from June 27, at 1.2735 by the press time.

Following that, the 61.8% Fibonacci retracement of June 16-29 fall, at 1.2750, can challenge the Cable buyers before directing them to a three-week-old horizontal resistance area surrounding 1.2805-10.

In a case where the GBP/USD price remains firmer past 1.2810, the odds of witnessing a tough fight to cross the previous monthly high of around 1.2850, which is also the yearly peak, can’t be ruled out.

On the flip side, a clear break of the 200-HMA level of 1.2690 can quickly fetch the Cable pair towards the late June swing high of around 1.2660. However, the June 29 bottom surrounding 1.2590 can challenge the GBP/USD bears afterward.

Should the Pound Sterling bears smash the 1.2590 level, they will aim for the previous monthly low of 1.2368.

GBP/USD: Hourly chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	1.2706
Today Daily Change	-0.0007
Today Daily Change %	-0.06%
Today daily open	1.2713

Trends
Daily SMA20	1.2679
Daily SMA50	1.2559
Daily SMA100	1.239
Daily SMA200	1.2132

Levels
Previous Daily High	1.274
Previous Daily Low	1.2684
Previous Weekly High	1.276
Previous Weekly Low	1.2591
Previous Monthly High	1.2848
Previous Monthly Low	1.2369
Daily Fibonacci 38.2%	1.2718
Daily Fibonacci 61.8%	1.2705
Daily Pivot Point S1	1.2685
Daily Pivot Point S2	1.2656
Daily Pivot Point S3	1.2629
Daily Pivot Point R1	1.2741
Daily Pivot Point R2	1.2768
Daily Pivot Point R3	1.2796

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.

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