- GBP/USD inched back closer to the monthly high, albeit lacked follow-through buying.
- Bulls, so far, have been struggling to make it through a descending trend-line hurdle.
- The technical set-up supports prospects for an eventual breakout to the upside.
The GBP/USD pair struggled to capitalize on a modest intraday uptick back closer to the monthly high and was last seen trading in the neutral territory, just above the 1.3600 mark.
Hopes for a diplomatic solution to the Ukraine crisis underpinned the US dollar's safe-haven status. Apart from this, rising bets for additional rate hikes by the Bank of England acted as a tailwind for the British pound and provided a modest lift to the GBP/USD pair. That said, the lack of progress in talks to resolve the problems with the Northern Ireland protocol of the Brexit agreement held back bulls from placing aggressive bets.
From a technical perspective, the GBP/USD pair, so far, has struggled to make it through a resistance marked by a downward sloping trend-line extending from July 2021. This is closely followed by the very important 200-day SMA, around the 1.3685 region and the 1.3700 mark, which if cleared will set the stage for additional gains. The outlook is reinforced by the fact that oscillators on the daily chart have just started gaining positive traction.
That said, it will still be prudent to wait for sustained strength beyond the aforementioned hurdles before positioning for any further appreciating move. The GBP/USD pair might then aim to retest the YTD low, around mid-1.3700s before extending the momentum further towards reclaiming the 1.3800 mark for the first time since October 2021.
On the flip side, any meaningful slide below the 1.3600 mark is likely to find decent support and bought into near mid-1.3500s. Some follow-through selling could make the GBP/USD pair vulnerable to drop back to challenge the key 1.3500 psychological mark en-route the weekly low, around the 1.3485 region touched on Monday.
GBP/USD daily chart
-637807857542724784.png)
Technical levels to watch
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.
Recommended content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.