GBP/USD Price Analysis: Bounces off 10-day SMA post-Powell speech

GBP/USD consolidates recent losses near key short-term SMA support.
Ascending trend line from January 11 adds to the downside filter.
Powell tried to placate bears but gained little success ahead of US Q4 GDP.

Anil Panchal FXStreet

GBP/USD wavers around 1.3700, at 1.3695 now, while trying to keep the latest corrective pullback. In doing so, the quote stays above 10-day SMA, amid strong RSI conditions, during the early Asian trading session on Thursday.

The quote refreshed the 32-month peak the previous day before declining to 1.3659 on broad US dollar strength. While the Fed’s dovish halt favored the greenback’s demand, due to its safe-haven nature, Federal Reserve Chairman Jerome Powell’s cautious optimism seemed to have triggered the latest bounce.

Read: Powell speech: Jury is out on whether there will be economic scarring

However, traders are cautious ahead of the key preliminary readings of the US Q4 GDP, expected 3.9% versus 33.4% prior, up for publishing at 13:30 GMT.

Technically, strong RSI conditions and successful trading beyond 10-day SMA, currently around 1.3665, favors the GBP/USD buyers to challenge the May 2018 high of 1.3772. Though, the recent top near 1.3755-60 offers an extra filter to the north whereas the April 24, 2018 low near 1.3920 can lure the bulls beyond 1.3772.

Alternatively, the pair’s declines below the 10-day SMA level of 1.3665 need to break a confluence of the short-term ascending support line and 21-day SMA, currently around 1.3640-35, to convince GBP/USD sellers. Following that, the monthly low near 1.3450 should gain the market’s attention.

Overall, the GBP/USD prices are in an uptrend backed by strong RSI and weak US dollar.

GBP/USD daily chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.3687
Today Daily Change	-53 pips
Today Daily Change %	-0.39%
Today daily open	1.374

Trends
Daily SMA20	1.3635
Daily SMA50	1.3492
Daily SMA100	1.3233
Daily SMA200	1.2956

Levels
Previous Daily High	1.3745
Previous Daily Low	1.361
Previous Weekly High	1.3746
Previous Weekly Low	1.352
Previous Monthly High	1.3686
Previous Monthly Low	1.3134
Daily Fibonacci 38.2%	1.3693
Daily Fibonacci 61.8%	1.3661
Daily Pivot Point S1	1.3651
Daily Pivot Point S2	1.3563
Daily Pivot Point S3	1.3516
Daily Pivot Point R1	1.3786
Daily Pivot Point R2	1.3833
Daily Pivot Point R3	1.3921

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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