- The Cable is displaying a sideways auction ahead of US Employment data.
- Investors’ risk appetite has trimmed as S&P500 futures are facing immense heat.
- The RSI (14) has slipped into the 40.00-60.00 range, which indicates a consolidation ahead.
The GBP/USD pair is displaying topsy-turvy moves around 1.2050 in the Asian session. The Cable asset has turned sideways as investors are awaiting the release of the Automatic Data Processing (ADP) Employment data, which is scheduled for Thursday before the release of the United States Nonfarm Payrolls (NFP) data.
A significant drop in investors' risk appetite as investors are dumping S&P500 futures could also lead to volatility in risk-perceived currencies. The US Dollar Index (DXY) has attempted a recovery after dropping to near 103.69.
On an hourly scale, the Cable is showing an inventory adjustment process below the horizontal resistance plotted from December 27 high around 1.2100. The inventory adjustment in a 1.2014-1.2088 range seems to be an accumulation one as the asset witnessed a responsive buying action around 1.1900 on Tuesday, making it a platform for a follow-up buying ahead.
The 20-and 50-period Exponential Moving Averages (EMAs) have delivered a bull cross at 1.2019, which adds to the upside filters.
While the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range, which indicates a consolidation ahead.
For an upside move, the Pound Sterling needs to push the Cable decisively above December 27 high around 1.2100, which will drive the major towards December 21 high at 1.2147 followed by December 21 high around 1.2200.
On the contrary, a downside move below the round-level support at 1.1900 will drag the major toward November 11 high at 1.1855. A slippage below the latter will expose Cable to November 21 low around 1.1778.
GBP/USD hourly chart
|Today last price||1.2044|
|Today Daily Change||-0.0015|
|Today Daily Change %||-0.12|
|Today daily open||1.2059|
|Previous Daily High||1.2088|
|Previous Daily Low||1.1958|
|Previous Weekly High||1.2126|
|Previous Weekly Low||1.2002|
|Previous Monthly High||1.2447|
|Previous Monthly Low||1.1992|
|Daily Fibonacci 38.2%||1.2038|
|Daily Fibonacci 61.8%||1.2007|
|Daily Pivot Point S1||1.1982|
|Daily Pivot Point S2||1.1905|
|Daily Pivot Point S3||1.1852|
|Daily Pivot Point R1||1.2112|
|Daily Pivot Point R2||1.2165|
|Daily Pivot Point R3||1.2242|
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.