- GBP/USD keeps bounce off three-week-old support despite posting bearish candlestick the previous day.
- Multiple failures to cross 100-DMA, nearly overbought RSI challenges upside momentum.
- 61.8% Fibonacci Retracement adds to the upside filters, 50-DMA to lure bears after immediate trend line support.
GBP/USD seesaws around 1.3550, up 0.12% intraday heading into Friday’s London open. In doing so, the cable pair stays firmer around a two-month top despite the previous day’s bearish candlestick formation, namely “Hanging Man”.
While an ascending support line from December 20 favors the corrective pullback, the 100-DMA challenges immediate upside around 1.3560 amid nearly overbought RSI conditions suggesting consolidation of recent gains.
Even if the quote manages to cross the 1.3560 immediate hurdle, 61.8% Fibonacci retracement (Fibo.) of October-December declines, around 1.3575, challenges the GBP/USD buyers before directing them to November 09 swing high close to 1.3610.
Alternatively, a downside break of the stated support line, near 1.3530 by the press time, will drag the quote towards the 50-DMA level of 1.3400, wherein the 50% Fibo. level surrounding 1.3500 may offer an intermediate halt.
During the GBP/USD weakness past 50-DMA, tops marked during late November and mid-December, around 1.3370-75, will be important to watch.
Overall, GBP/USD bulls have multiple hurdles to keep the reins while sellers have brighter scope for entries.
GBP/USD: Daily chart
Trend: Pullback 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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.