- GBP/USD remains on the sideline after reversing from two-week low.
- Three-week-old symmetrical triangle restricts immediate moves between 1.2710 and 1.2800.
- Steady RSI, two-month-old rising support line also challenge Cable pair’s trading moves.
- Upbeat UK PMIs will need validation from softer US PMIs, downbeat Fed talks to keep Pound Sterling firmer.
GBP/USD edges lower past 1.2750 after reversing from the highest level in a fortnight the previous day, mostly quiet around 1.2750 amid the early hours of Wednesday’s Asian session. In doing so, the Cable pair portrays the market’s cautious mood ahead of the preliminary readings of the August month Purchasing Managers Indexes (PMIs) for the UK and the US.
That said, a three-week-old symmetrical triangle formation restricts immediate Pound Sterling moves between 1.2710 and 1.2800. It’s worth noting that the steady RSI (14) also portrays the market’s indecision.
Apart from the symmetrical triangle, an ascending support line from late June and the 200-SMA hurdle, respectively near 1.2680 and 1.2835, also act as additional trading filters for the GBP/USD pair.
It’s worth noting, however, that an upside break of the 200-SMA won’t hesitate to challenge the late July swing high of around 1.3000 whereas the Pound Sterling’s fall below 1.2680 will aim for the June 29 swing low of surrounding 1.2590.
Above all, the GBP/USD maintains the gradual downtrend from the mid-July peak despite the latest inaction. That said, a likely softer UK PMIs can keep the Cable bears even if the US activity data matches the unimpressive forecasts.
Also read: GBP/USD post losses amidst risk aversion, China’s economic woes
GBP/USD: Four-hour chart
Trend: Gradual downside 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
AUD/USD posts modest gains above 0.6600, investors await fresh catalysts
The AUD/USD pair posts modest gains around 0.6605 during the early Asian session on Monday. Investors await the key US economic data this week for fresh catalysts, including the Consumer Price Index, Producer Price Index, and Retail Sales.
EUR/USD trades with a bearish bias above 1.0750 ahead of US economic data
EUR/USD trades on a softer note around 1.0770 during the Asian trading hours on Monday. Investors turn to cautious mode and prefer to wait on the sidelines ahead of the US key economic data this week.
Gold extends the rally near $2,360 amid geopolitical risks
Gold price extends its upside near $2,360 on Monday during the early Asian trading hours. The rising geopolitical tensions in the Middle East boost safe-haven flows and benefit precious metals.
Could Worldcoin price shoot up 45% ahead of OpenAI’s live stream on Monday?
Worldcoin price has formed a double bottom around a key support level, suggesting a potential accumulation. If the OpenAI’s Monday live stream has a positive impact on Artificial Intelligence field, it could positively impact WLD and other AI-based tokens.
Week ahead: US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.