GBP/USD Price Analysis: Fades bounce off 21-day EMA ahead of UK budget


  • GBP/USD wavers in a choppy range near weekly top.
  • Sustained trading beyond key EMA, trend lines joins hopes of easy budget to favor bulls.

GBP/USD trims prior gains while declining to 1.3955, down 0.08% intraday, during Wednesday’s Asian session. In doing so, the quote fizzles Tuesday’s bounce off 21-day EMA amid the bearish MACD conditions.

However, the cable’s sustained trading beyond key trend lines from December and September 2020, coupled with hopes of a market-favorable UK budget, suggest further upside for the GBP/USD prices.

Read: UK furlough scheme will be extended from April to September in budget – FT

It’s worth mentioning that an upside break of the 1.4000 threshold will trigger a fresh rise targeting the 1.4085 and the 1.4100 resistances while February’s top, also the highest since early 2018, surrounding 1.4240, will challenge the bulls afterward.

Alternatively, a daily closing below the 21-day EMA level of 1.3905 will need to provide a daily closing below the 1.3900 round-figure to direct the bearish bias towards an ascending trend line from December 21, 2020, currently around 1.3790.

In a case where GBP/USD bears dominate past-1.3790, January’s top surrounding 1.3750 can offer an intermediate halt before dragging the quote back to a longer-term support line near 1.3600.

Overall, GBP/USD stays in an uptrend and hence any more positive from the budget will escalate the cable’s run-up to refresh multi-month high. On the contrary, the disappointment will also have larger repercussions.

GBP/USD daily chart

Trend: Bullish

Additional important levels

Overview
Today last price 1.3956
Today Daily Change -10 pips
Today Daily Change % -0.07%
Today daily open 1.3966
 
Trends
Daily SMA20 1.3895
Daily SMA50 1.3731
Daily SMA100 1.3475
Daily SMA200 1.3146
 
Levels
Previous Daily High 1.3977
Previous Daily Low 1.3859
Previous Weekly High 1.4243
Previous Weekly Low 1.389
Previous Monthly High 1.4243
Previous Monthly Low 1.3566
Daily Fibonacci 38.2% 1.3932
Daily Fibonacci 61.8% 1.3904
Daily Pivot Point S1 1.3891
Daily Pivot Point S2 1.3816
Daily Pivot Point S3 1.3773
Daily Pivot Point R1 1.4009
Daily Pivot Point R2 1.4052
Daily Pivot Point R3 1.4127

 

 

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