- GBP/USD edged higher for the third consecutive session and climbed to one-week tops.
- Sustained strength beyond 200-hour SMA might be seen as a trigger for intraday bulls.
- Mixed oscillators on hourly/daily charts warrant caution before placing aggressive bets.
The GBP/USD pair built on this week's recovery move from the 100-day SMA support near the 1.3670-65 region and edged higher for the third consecutive session on Wednesday. The momentum pushed the pair to one-week tops during the early European session, with bulls now awaiting a move beyond the 1.3800 mark.
Looking at the technical picture, a sustained strength beyond 200-hour SMA, around the 1.3780 region might be seen as a trigger for intraday bullish traders. That said, a modest US dollar rebound from three-week lows – amid a modest pickup in the US Treasury bond yields – might cap gains for the GBP/USD pair.
Meanwhile, the GBP/USD pair was last seen hovering near the 50% Fibonacci level of the 1.3919-1.3669 recent downfall. Some follow-through buying beyond the 1.3800 round-figure will reaffirm the intraday positive outlook and allow bulls to aim towards testing the 61.8% Fibo. level resistance near the 1.3825-30 region.
The constructive set-up is reinforced by the fact that technical indicators on hourly charts have been gaining positive traction and are still far from being in the overbought territory. That said, oscillators on the daily chart are yet to confirm a bullish bias and warrant some caution before placing aggressive bets.
On the flip side, any meaningful pullback now seems to find decent support near the 38.2% Fibo. level, around the 1.3765-60 region. Failure to defend the mentioned support will negate any near-term bullish bias, instead prompt some technical selling and drag the GBP/USD pair to 1.3730-25 area (23.6% Fibo.) en-route the 1.3700 mark.
GBP/USD 1-hour chart
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 posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.