- GBP/USD faces a stiff hurdle around 1.3290 on the road to recovery.
- The US dollar retreat keeps the downside cushioned amid the upbeat mood.
- Symmetrical triangle breakout needs confirmation on the four-hour chart.
GBP/USD is advancing towards 1.3300 so far this Tuesday, finding support from a renewed downside in the US dollar across the board amid an improving market mood.
Easing fears over the new Omicron covid variant, as its effects are seen as mild, keep the overall market sentiment buoyed.
Although the further upside appears uncertain amid cautious remarks from the Bank of England (BOE) policymakers, as they contemplate their rate hike plans amid the emergence of the new covid strain.
Also, capping the upside technically is the powerful resistance near the 1.3290-1.3295 price zone. The bearish 50-Simple Moving Average (SMA) aligns at that level.
A four-hourly candlestick closing above that level, GBP/USD will validate a symmetrical triangle breakout.
The 14-day Relative Strength Index (RSI) points higher above the midline, allowing room for more gains.
Buyers will then look to extend the rebound towards the 100-SMA at 1.3360.
GBP/USD: Daily chart
Alternatively, a failure to find acceptance above the aforesaid critical resistance, sellers will return to test the 21-SMA at 1.3269.
The next downside target for GBP bears is then seen at the 1.3250 psychological level. Further south, the triangle support at 1.3232 could be put to test.
GBP/USD: Additional levels to consider
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 buyers attack 0.7100 amid sluggish Asian session, second-tier Aussie data eyed
AUD/USD grinds higher after bouncing off 21-DMA, eyes to snap two-day downtrend. The pair picks up bids to refresh intraday high around 0.7100, extending the previous day’s rebound from 0.7035, amid broad US dollar weakness. RBA’s Ellis hints at more rate rises, FOMC Minutes raised doubts on rate lifts post-September.
EUR/USD eyes to regain 1.0700 post-Fed Minutes, US GDP in focus
EUR/USD stays on the way to reverse the pullback from a monthly high, picking up bids to 1.0685 during early Thursday morning in Asia. Second reading of Q1 2022 US GDP, Jobless Claims and housing data to decorate calendar amid multiple holidays in Europe.
Gold defends bounce off weekly support near $1,850 ahead of US GDP
Gold treads water around $1,855, defending the previous day’s corrective pullback from a one-week-old support line during Thursday’s Asian session as sluggish markets and a lack of major data/events seem to restrict the metal’s immediate moves.
What needs to happen for Axie Infinity price to recover
Axie Infinity price displays reasons to believe in further momentum to the upside. Traders should approach the digital asset with relative caution, looking for one more fake-out before the rally occurs. Axie Infinity price appears to be unfolding as an extended impulse wave down.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!