• GBP/USD sellers look for entry below critical 21-DMA.
  • Tuesday’s Doji suggests the bears could be losing conviction.
  • Focus shifts to UK and US economic data.

GBP/USD is on the back foot around 1.3650 heading into the London open. The downside appears cushioned for Cable, thanks to the upbeat market mood and a broadly weaker US dollar.

Markets look forward to the UK Final Services PMI, US ADP jobs and ISM Services PMI data for fresh trading impetus. Also, in focus remains the developments around the Brexit issues and US stimulus talks.

Looking from a technical perspective, the bulls have managed to defend the critical 21-daily moving average (DMA), now at 1.3648, so far this Wednesday. The price breached the latter on Tuesday but recaptured it towards the closing.

Meanwhile, the Doji candlesticks formed on the daily chart a day before could be hinting towards sellers’ exhaustion, especially after a three-day bearish run.

Therefore, the GBP buyers remain hopeful so long as the price holds above the 21-DMA. The major could likely retest Tuesday’s high at 1.3710.

The Relative Strength Index (RSI) trades flat above the midline, near 52.10, which could offer some support to the bulls.

However, a daily closing below the 21-DMA could trigger a sharp sell-off towards the upward-sloping 50-DMA support at 1.3535. Note that the price hasn’t given a daily closing below the 21-DMA since January 11.

GBP/USD: Daily chart

GBP/USD: Additional levels

GBP/USD

Overview
Today last price 1.3652
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.366
 
Trends
Daily SMA20 1.3649
Daily SMA50 1.353
Daily SMA100 1.3274
Daily SMA200 1.2988
 
Levels
Previous Daily High 1.371
Previous Daily Low 1.3611
Previous Weekly High 1.3759
Previous Weekly Low 1.361
Previous Monthly High 1.3759
Previous Monthly Low 1.3451
Daily Fibonacci 38.2% 1.3649
Daily Fibonacci 61.8% 1.3672
Daily Pivot Point S1 1.3611
Daily Pivot Point S2 1.3562
Daily Pivot Point S3 1.3512
Daily Pivot Point R1 1.371
Daily Pivot Point R2 1.376
Daily Pivot Point R3 1.3809

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers modestly, trades below 1.0550

EUR/USD recovers modestly, trades below 1.0550

EUR/USD has managed to stage a rebound after having declined toward 1.0500 in the early American session. The negative shift witnessed in market sentiment after the latest US data, however, helps the dollar find demand and doesn't allow the pair to extend its recovery.

EUR/USD News

GBP/USD trades below 1.2200 pressured by risk aversion

GBP/USD trades below 1.2200 pressured by risk aversion

GBP/USD has extended its daily slide and touched a fresh five-day low below 1.220 in the second half of the day on Tuesday. Wall Street's main indexes are suffering heavy losses, providing a boost to the safe-haven dollar in the American session.

GBP/USD News

Gold continues to fluctuate in tight range above $1,820

Gold continues to fluctuate in tight range above $1,820

Gold edged lower in the early American session but managed to erase its daily losses. With the 10-year US T-bond yield falling into negative territory amid risk aversion on Tuesday, XAU/USD holds its ground and continues to trade near $1,820.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures