- GBP/USD struggles to keep the bounce off 1.3041.
- Sustained trading below 50-bar SMA, bearish MACD favor sellers.
- A two-week-old ascending trend line offers immediate support ahead of 100-bar SMA.
GBP/USD seesaws near 1.3050/55 as markets in Tokyo open for trading on Wednesday. Although the Cable currently probes the previous day’s fall, it’s failures to cross 50-bar SMA joins bearish MACD conditions to suggest further downside.
Other than the technical details, downbeat expectations from the UK’s preliminary GDP reading for the second quarter, forecast -22.4% versus -1.7% YoY, can also weigh on the quote.
Read: UK GDP Preview: Three reasons why 20% contraction estimates are too low, GBP/USD may rise
As a result, an ascending trend line from July 30, at 1.3030 now, gains the sellers’ immediate attention before targeting the 1.3000 threshold and 100-bar SMA level of 1.2965.
Though, the pair’s extended weakness past-1.2965 will make it vulnerable to revisit July 21 top near 1.2765.
On the contrary, a clear break of 50-day SMA, currently around 1.3090, isn’t enough to recall the bulls as a downward sloping trend line from August 06 near 1.3125 also challenges the pair’s short-term upside.
During the pair’s successful rise past-1.3125, the monthly high of 1.3185 and March month’s top near 1.3200 will be the key upside hurdles to watch.
GBP/USD four-hour chart
Trend: Pullback expected
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
USD/JPY briefly recaptures 160.00, then pulls back sharply
Having briefly recaptured 160.00, USD/JPY pulls back sharply toward 159.00 on potential Japanese FX intervention risks. The Yen tumbles amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
AUD/USD extends gains above 0.6550 on risk flows, hawkish RBA expectations
AUD/USD extends gains above 0.6550 in the Asian session on Monday. The Aussie pair is underpinned by increased bets of an RBA rate hike at its May policy meeting after the previous week's hot Australian CPI data. Risk flows also power the pair's upside.
Gold stays weak below $2,350 amid risk-on mood, firmer USD
Gold price trades on a softer note below $2,350 early Monday. The recent US economic data showed that US inflationary pressures stayed firm, supporting the US Dollar at the expense of Gold price. The upbeat mood also adds to the weight on the bright metal.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.