- The pound Sterling has picked demand on ease in risk-off mood and firmer Like-For-Like Retail Sales data.
- A loss in upside momentum resulted in a sell-off in Cable.
- A bear cross, represented by the 20-and 50-period EMAs at 1.2230, adds to the downside filters.
The GBP/USD pair has extended its recovery above the psychological resistance of 1.2200 in the Tokyo session. The Cable picked reversal after dropping to near 1.2167 as the risk-off impulse has trimmed marginally. Apart from that, upbeat Like-For-Like Retail Sales by the British Retail Consortium (BRC) have supported Pound Sterling.
Meanwhile, the US Dollar Index (DXY) is putting efforts into sustaining above the round-level cushion of 105.00. The 10-year US Treasury yields have sensed selling pressure after printing a high of 3.59%.
On an hourly scale, Cable has witnessed selling pressure from market participants after failing to keep the upside momentum intact. The asset was making higher highs while the momentum oscillator, Relative Strength Index (RSI) (14), formed a lower high on Monday. A loss in the upside momentum forced investors to book longs.
A bear cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at 1.2230, adds to the downside filters.
Meanwhile, the RSI (14) is hovering around 40.00. A slippage inside the bearish range of 20.00-40.00 will trigger a bearish momentum.
Going forward, a decline below Friday’s low at 1.2134 will drag the Cable toward the psychological resistance at 1.2000, followed by the 20-EMA around 1.1971.
On the flip side, a break above Monday’s high at 1.2345 will drive the Cable toward June 16 high of around 1.2400. A breach of the latter will send the major toward June 1 low at 1.2460.
GBP/USD hourly chart
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