GBP/USD Price Analysis: Climbs on USD weakness but fails to conquer the 200-DMA
- GBP/USD rallied almost 1% or 114 pips on Friday, post US NFP.
- Bulls struggle at the 200-day EMA, exacerbating a GBP/USD fall of 60 pips to current rates.
- GBP/USD Price Analysis: The bias is bearish, but upside risks remain.
GBP/USD recovers some ground getting ready to finish the week with minimal gains after bouncing off YTD lows at 1.1802, with buyers reclaiming 1.2000 on a mixed US jobs report. At the time of writing, the GBP/USD is trading at 1.2040, above its opening price y 1.01%.
GBP/USD Price Action
The GBP/USD has reclaimed the 1.2000 figure, but its bias has not changed. The aftermath of the US Nonfarm Payrolls report witnessed the Pound Sterling (GBP) reaching the 200-day Exponential Moving Average (EMA) at 1.2112. However, sellers stepped in and dragged the spot beneath the 1.2100 mark.
On its way south, the GBP/USD pierced under the 50-day EMA, leaving the exchange rates around familiar levels. Nevertheless, the 100 and 20-day EMAs are resting below the current prices, warranting further consolidation ahead.
For a bearish resumption, the GBP/USD needs to crack the 100 and 20-day EMAs, each at 1.2023 and 1.2010, respectively. After that, the 1,2000 figure could be grabbed, paving the way for further downside. The following support would be the 1.1900 figure, ahead of the YTD low at 1.1802.
Conversely, the GBP/USD must reclaim the 50-day EMA at 1.2056 if buyers want to remain hopeful of shifting the trend. The next resistance would be 1.2100, followed by the 200-day EMA at 1.2112.
GBP/USD Daily Chart
GBP/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
