GBP/USD Price Analysis: Recovery remains capped below 100-day EMA
- GBP/USD consolidates recent gains in a choppy range below the key EMA.
- Upbeat momentum, sustained trading above crucial supports keep buyers hopeful.
GBP/USD seesaws 1.3865 and 1.3850 amid a quiet Asian session on Thursday. The cable pair snapped a two-day downtrend the previous day but couldn’t cross the 100-day EMA hurdle.
Even so, the upward sloping Momentum line joins the quote’s successful trading above the three-month-old support line and 200-day EMA favor buyers.
Hence, a clear break of 100-day EMA, around 1.3890 by the press time, will act as a trigger for the pair’s run-up to challenge the monthly top near 1.3910, also targeting the 1.4000–4010 important resistance comprising multiple highs marked since March.
During the GBP/USD upside beyond 1.4010, early June’s lows near 1.4075 may test the pair buyers.
On the flip side, the 1.3800 threshold offers immediate support during the quote’s pullback, a break of which could drag the pair to an ascending trend line from April 09, around 1.3740.
It should, however, be noted that the GBP/USD weakness past 1.3740 will need validation from the 200-day EMA level of 1.3690 to aim for February’s low near 1.3565.
To sum up, GBP/USD bulls prepare for further upside but wait for the UK’s Claimant Count Change and Unemployment Rate figures for June.
GBP/USD: Daily chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
