GBP/USD remains vulnerable below 100-DMA, dovish BOE weighs

GBP/USD remains pressured by dovish BOE, Delta plus covid strain woes.
Thursday’s closing below 100-DMA keeps the sellers hopeful.
The cable ignores the US dollar’s weakness ahead of PCE inflation data.

Dhwani Mehta FXStreet

GBP/USD is struggling to resist above the 1.3900 level, as the Bank of England’s (BOE) dovish surprise continues to undermine the sentiment around the pound.

The persistent sluggish moves in the US dollar amid mixed signals from the Fed and weak economic data also fail to inspire the bulls.

Further, the cable traders also fail to take advantage of improving Brexit situation, especially after the UK’s Environment Secretary George Eustice said on Thursday, "I think we're getting some positive indications and it's always our view that it's better if we can reach an agreement with the European Union on these things.”

Markets now look forward to the critical US PCE inflation data for fresh hints on the Fed’s next policy move, which will likely have a significant impact on the greenback, in turn, moving GBP/USD.

GBP/USD technical outlook

From a near-term technical perspective, the cable’s daily closing below the 100-Daily Moving Average (DMA) at 1.3951 has opened the doors for the next downtrend towards the upward sloping trendline support at 1.3793.

The 14-day Relative Strength Index (RSI) edges lower while below the midline, allowing room for more declines.

GBP/USD daily chart

On the flip side, any bounce will meet initial resistance at the abovementioned 100-DMA barrier, above which the mildly bullish 50-DMA at 1.4036 could be challenged.

However, the bulls need acceptance above 1.4000 is critical to unleashing additional upside.

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.3907
Today Daily Change	-0.0014
Today Daily Change %	-0.10
Today daily open	1.3922

Trends
Daily SMA20	1.407
Daily SMA50	1.4035
Daily SMA100	1.3949
Daily SMA200	1.3618

Levels
Previous Daily High	1.3987
Previous Daily Low	1.3889
Previous Weekly High	1.4133
Previous Weekly Low	1.3792
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.3927
Daily Fibonacci 61.8%	1.3949
Daily Pivot Point S1	1.3878
Daily Pivot Point S2	1.3835
Daily Pivot Point S3	1.3781
Daily Pivot Point R1	1.3976
Daily Pivot Point R2	1.403
Daily Pivot Point R3	1.4073

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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