GBP/USD Price Analysis: Battles two-week-old hurdle below 1.3800

GBP/USD seesaws in a choppy range after easing from 1.3812.
Bullish MACD, upbeat RSI and sustained trading beyond immediate horizontal support favor bulls.
100-SMA adds to the upside filters, March low offers extra challenge for bears.

Anil Panchal FXStreet

Having snapped a two-day losing streak the previous day, GBP/USD cools down to 1.3785, staying inside a 10-pip range, during Thursday’s Asian session. In doing so, the quote justifies pullback from a downward sloping trend line from March 18.

However, strong MACD and RSI joins the cable’s sustained trading above a short-term horizontal area around 1.3730 keeps buyer hopeful.

It should be noted that a clear break of the immediate resistance line, at 1.3800, needs to cross the 100-SMA level of 1.3842 to convince GBP/USD bulls.

Meanwhile, a downside break of 1.3730 will have the previous month’s low around 1.3670 as an extra hope of a bounce.

Overall, GBP/USD is consolidating losses from late February but the road to recovery is bumpy.

GBP/USD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.3784
Today Daily Change	44 pips
Today Daily Change %	0.32%
Today daily open	1.374

Trends
Daily SMA20	1.3856
Daily SMA50	1.3839
Daily SMA100	1.364
Daily SMA200	1.3279

Levels
Previous Daily High	1.3783
Previous Daily Low	1.3706
Previous Weekly High	1.3877
Previous Weekly Low	1.3671
Previous Monthly High	1.4243
Previous Monthly Low	1.3566
Daily Fibonacci 38.2%	1.3736
Daily Fibonacci 61.8%	1.3754
Daily Pivot Point S1	1.3703
Daily Pivot Point S2	1.3666
Daily Pivot Point S3	1.3626
Daily Pivot Point R1	1.378
Daily Pivot Point R2	1.3821
Daily Pivot Point R3	1.3858

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Week ahead: US CPI, France’s budget crisis and Q3 earnings to set the market tone

The US dollar held relatively strong this week, despite the disappointing US jobs report on October 2, which further decreased the probability of a back-to-back rate hike by the Fed at the upcoming gathering on October 28.

CFTC Report: Euro and Aussie shorts expand amid diverging signals

The week in one sentence: Euro and Australian Dollar shorts deepened in the week to October 6, while Yen longs rebuilt. In addition, Coffee buying continued, and Gold exposure remained elevated despite another price decline. Speculators turned more negative on the Euro, increasing the net exposure to around 99.3K contracts.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?