- GBP/USD edges lower on Friday in the European trading hours.
- The pair lost almost 300-pips in a span of two days from the high of 1.3717.
- Double bottom support near 1.3410 brings much respite for GBP/USD.
GBP/USD continues to consolidate for the past two sessions. The pair confides in a narrow trade band with a downside bias. At the time of writing, GBP/USD is trading at 1.3471, down 0.02% for the day.
GBP/USD daily chart
-637686749615393383.png)
Technically speaking, after testing the high of 1.3913 on September 14, the GBP/USD pair lost the momentum and continued with its existing short-term downside trend. Furthermore, the spot trades below the 21-day and 50-day Simple Moving Averages (SMA), which confirms the pressured movement for the pair at least in the short term. The GBP/USD bears are looking for some corrective pullback .Having said that, if price sustains above the intraday high, it could move back to the previous day’s high of 1.3517 followed by the psychological 1.3600 level.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. This would mean that with any uptick in the MACD the bulls could easily take out the high of 1.3717 made on this Tuesday.
Alternatively, on the reversal side the immediate support appears at the 1.3410 horizontal support level. Next, the bears could fall back to the levels last seen in December 2020 at 1.3350 (December 23).
GBP/USD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.