GBP/USD: Rejection at 1.1500 recalls sellers ahead of Truss, US data

GBP/USD is off the lows but remains vulnerable near 1.1400.
The US dollar recovery strengthens amid broad risk aversion.
Cable bears eye 21 DMA once again after rejection at 1.1500.

Dhwani Mehta FXStreet

GBP/USD is correcting from three-week highs of 1.1495, snapping a six-day uptrend, as the US dollar jumps back on the bids amid broad risk aversion.

Escalating geopolitical tensions between Russia and Europe over the Ukraine war keep investors on the edge. The European Union (EU) backs sanctions against Russia, including the oil price cap. The flight to safety team persists, underpinning the dollar’s safe-haven appeal.

Investors refrain from placing any directional bets on the pound ahead of UK PM Liz Truss’ address to the Tory party. In the meantime, cable finds some comfort from the upward revision to the UK final S&P Global Services PMI, which came in at 50.0 in September.

Attention now turns towards the US ADP employment and ISM Services PMI due later in the NA session for fresh trading opportunities.

As observed on a daily chart, GBP/USD eyes the horizontal 21-Daily Moving Average (DMA) at 1.1297 on its retreat from higher levels.

The next downside target is seen at 1.1250 the psychological level.

The 14-day Relative Strength Index (RSI), however, is holding above the midline while keeping the bullish bias intact.

Alternatively, the descending trendline resistance at 1.1662 remains on buyers’ radars once the 1.1500 level gets cleared.

GBP/USD: Daily chart

GBP/USD: Additional technical levels

GBP/USD

Overview
Today last price	1.1409
Today Daily Change	-0.0068
Today Daily Change %	-0.59
Today daily open	1.1477

Trends
Daily SMA20	1.1291
Daily SMA50	1.1677
Daily SMA100	1.1958
Daily SMA200	1.2573

Levels
Previous Daily High	1.149
Previous Daily Low	1.1281
Previous Weekly High	1.1235
Previous Weekly Low	1.0339
Previous Monthly High	1.1738
Previous Monthly Low	1.0339
Daily Fibonacci 38.2%	1.141
Daily Fibonacci 61.8%	1.1361
Daily Pivot Point S1	1.1342
Daily Pivot Point S2	1.1207
Daily Pivot Point S3	1.1133
Daily Pivot Point R1	1.1551
Daily Pivot Point R2	1.1625
Daily Pivot Point R3	1.176

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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