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.
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
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.
