GBP/USD Price Analysis: Cable retreat appears elusive beyond 1.2690 support confluence

GBP/USD lacks upside momentum after refreshing one-week high.
Clear upside break of 50-SMA, three-week-old falling trend line joins upbeat oscillators to keep Pound Sterling bullish.
Cable sellers need validation from 200-SMA to retake control.

Anil Panchal FXStreet

GBP/USD bulls take a breather amid the early hours of Wednesday’s Asian session, after refreshing the weekly top around 1.2740 the previous day. That said, the Pound Sterling seesaws near 1.2710-15 by the press time.

Despite the latest inaction, or say a lack of bullish action, the Cable pair remains on the buyer’s radar as it broke the key resistance confluence, now support, comprising the 50-SMA and a downward-sloping trend line from June 16, close to 1.2690.

Also keeping the GBP/USD buyers hopeful are the bullish MACD signals and the upbeat RSI (14) line, not overbought.

With this, the Cable pair’s retreat appears elusive unless breaking the 1.2690 support confluence.

Even if the Pound Sterling drops below the 1.2690 key support, an upward-sloping trend line stretched from May 25 and the 200-SMA, respectively near 1.2630 and 1.2570, could challenge the GBP/USD bears before giving them control.

Meanwhile, GBP/USD run-up needs to cross 1.2740 for a fresh boost toward the 1.2800 round figure.

Following that, the latest multi-month peak marked in June around 1.2850 will be in the spotlight.

Should the RSI (14) line fail to stop the bulls around 1.2850, as it is rushing towards the overbought territory, then the GBP/USD upside may aim for the 61.8% Fibonacci Extension (FE) of its late May to June 29 moves, near 1.2925.

GBP/USD: Four-hour chart

Trend: Further upside expected

additional important levels

Overview
Today last price	1.2713
Today Daily Change	0.0020
Today Daily Change %	0.16%
Today daily open	1.2693

Trends
Daily SMA20	1.2664
Daily SMA50	1.2553
Daily SMA100	1.2385
Daily SMA200	1.2122

Levels
Previous Daily High	1.2723
Previous Daily Low	1.2659
Previous Weekly High	1.276
Previous Weekly Low	1.2591
Previous Monthly High	1.2848
Previous Monthly Low	1.2369
Daily Fibonacci 38.2%	1.2683
Daily Fibonacci 61.8%	1.2699
Daily Pivot Point S1	1.266
Daily Pivot Point S2	1.2627
Daily Pivot Point S3	1.2596
Daily Pivot Point R1	1.2725
Daily Pivot Point R2	1.2756
Daily Pivot Point R3	1.2789

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.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.