GBP/USD Price Analysis: Seesawed in an extensive trading range but stabilized around 1.3540s
- The GBP/USD in the week is almost flat, down 0.07%.
- Easing tensions in Eastern Europe improved the financial market mood.
- GBP/USD Technical Outlook: Neutral-upward biased, but caution is warranted as the 200-DMA lies on top of the exchange rate.
As the North American sesión ends, the British pound advances in the day amid an improved market mood, inferred by easing tensions in the Russia/Ukraine conflict in Eastern Europe. At the time of writing, the GBP/USD is trading at 1.3540.
Tuesday’s session witnessed a GBP/USD pair fluctuating in the tops/bottoms of the daily range. Late in the Asian session, the GBP/USD reached a daily high at 1.3566, followed by a drop in the early North American session, from 1.3547 towards 1.3488 on the back of a news headline of a Guardian Journalist that cited “Western officials” saying that there was no de-escalation and that “we see the opposite.”
Coinciding with the headline, the GBP/USD was meandering around the 100 and the 200-hour simple moving averages (SMAs), which were located above the spot price, as resistance levels. The GBP bull’s failure to overcome the latter sparked the downward move.
GBP/USD Price Forecast: Technical outlook
With that scenario in play, the GBP/USD is neutral-upward biased. The short time-frame daily moving averages (DMAs) reside below the spot price, while the 200-DMA lies near the 1.3700 figure.
The GBP/USD first resistance would be the 1.3600 figure. Breach of the latter would expose February 10 1.3643 daily high, followed by a ten-month-old fall slope trendline around 1.3655-70 area and then the 200-DMA at 1.3690.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
