GBP/USD Price Analysis: 50-SMA defends Cable bulls below 1.2700, US NFP, BOE’s Pill eyed
- GBP/USD picks up bids to pare the first daily loss in four, bracing for the weekly gain.
- Cable bounces off 50-SMA after retreating from five-week-old resistance line.
- MACD signals, sustained trading below the key resistance line, 200-SMA keep Pound Sterling sellers hopeful.
- Multiple supports to test bears while buyers can cheer 1.2760 breakout.
GBP/USD portrays the pre-NFP consolidation while bouncing off 50-SMA amid the early hours of Friday’s trading, following the first daily loss in four. That said, the Cable pair picks up bids to 1.2675 by the press time while bracing for the weekly gains.
Despite the latest rebound, the GBP/USD pair remains on the seller’s radar due to the quote’s multiple failures to cross a five-week-long descending resistance line and sustained trading below the 200-SMA. Adding strength to the downside bias is the looming bear cross on the MACD.
With this, the Pound Sterling is likely to portray another attempt to break the 50-SMA support of 1.2660.
Following that, the GBP/USD bears may aim for a slightly descending support line stretched from early August and the previous monthly low, respectively near 1.2610 and 1.2550.
Meanwhile, a downward-sloping resistance line from July 27, near 1.2720, restricts the immediate upside of the Cable pair ahead of the 200-SMA surrounding 1.2760.
In a case where the Pound Sterling remains firmer past 1.2760, the buyers will aim for the previous monthly high of around 1.2830.
Apart from the technical details, the final readings of the UK S&P Global Manufacturing PMI, the US employment report and the ISM Manufacturing PMI for August will also be important to aptly forecast the GBP/USD moves. Also, a speech from the Bank of England (BoE) policymaker Huw Pill will offer additional directions to the pair traders.
GBP/USD: Four-hour chart
Trend: Pullback 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.
