GBP/USD Price Analysis: Upside needs validation above 1.3500

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.

Rekha Chauhan Independent Analyst

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

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

GBP/USD

Overview
Today last price	1.348
Today Daily Change	0.0006
Today Daily Change %	0.04
Today daily open	1.3474

Trends
Daily SMA20	1.3723
Daily SMA50	1.3776
Daily SMA100	1.3878
Daily SMA200	1.3844

Levels
Previous Daily High	1.3518
Previous Daily Low	1.3416
Previous Weekly High	1.3752
Previous Weekly Low	1.361
Previous Monthly High	1.3913
Previous Monthly Low	1.3412
Daily Fibonacci 38.2%	1.3479
Daily Fibonacci 61.8%	1.3455
Daily Pivot Point S1	1.342
Daily Pivot Point S2	1.3367
Daily Pivot Point S3	1.3318
Daily Pivot Point R1	1.3522
Daily Pivot Point R2	1.3571
Daily Pivot Point R3	1.3624

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

AUD/USD breaks 0.7000 as RBA inflation warning fuels two-week high

The Australian Dollar registers solid gains versus the Greenback, climbing above 0.7000 and hitting a two-week high of 0.7017 as broad US Dollar weakness pushes AUD/USD above 0.7000 amid a light economic docket in both Australia and the US.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Bitcoin resumes Nasdaq correlation as macro pressures threaten $82,500 support

Bitcoin's (BTC) correlation with the Nasdaq is rising again after last week's decline alongside tech stocks, even as macro pressures place the $82,500 support at risk. In a report on Tuesday, K33 Research highlighted that Bitcoin has resumed its correlation with the tech-heavy Nasdaq after last week's price movements.

SpaceX's earnings don't matter. What they unlock does

The Elon Musk-founded SpaceX reports third-quarter results after Tuesday's session. The figure that decides the next month for the stock isn't in them. On Thursday, the second full trading day after the release, up to 1.3 billion shares held by employees and early investors become eligible for sale.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.