GBP/USD Price Analysis: Cable begins BoE/NFP week on defensive note near 1.2850
- GBP/USD remains sidelined after bouncing off two-month-old rising support line.
- Bearish MACD signals, steady RSI joins repeated failures to break 10-DMA to tease Pound Sterling sellers.
- Rising support line from early March acts as the final defense of Cable buyers.
- Recovery needs validation from 1.3000 and hawkish BoE move to convince buyers.
GBP/USD aptly portrays the market’s indecision amid the early hours of the key week comprising the Bank of England (BoE) Monetary Policy Meeting and the US Nonfarm Payrolls (NFP), making rounds to 1.2850 by the press time. In doing so, the Cable pair also justifies the mixed technical signals amid cautious optimism.
Also read: GBP/USD recovery looks to recapture 1.2900 as Fed hawks retreat on mixed data, focus on BoE, US NFP
That said, the Pound Sterling improved from a two-month-old support line the previous day but bearish MACD signals and steady RSI prods the GBP/USD bulls of late. Also acting as a short-term upside hurdle is the 10-DMA level of around 1.2890.
Following that, a fortnight-old horizontal resistance area surrounding the 1.3000 psychological magnet will act as the additional check for the Cable buyers before challenging the yearly high marked during the mid-July around 1.3145.
Ina case where the GBP/USD remains firmer past 1.3145, the odds of witnessing the pair’s run-up toward March 2022 peak of around 1.3300 can’t be ruled out.
Alternatively, a daily closing beneath the two-month-old rising support line, close to 1.2840 by the press time, needs validation from an upward-sloping support line from early March, surrounding 1.2720, to welcome the Pound Sterling bears.
Following that, May’s peak of 1.2640 may act as the final defense of the GBP/USD buyers.
GBP/USD: Daily chart
Trend: Further upside expected
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.
