GBP/USD Technical Analysis: Short-term falling trendline to cap bounces off 50-day SMA

GBP/USD snaps four-day-old winning streak.
An upward sloping trend line since early-November will restrict the pair’s downside below 50-day SMA.

Anil Panchal FXStreet

GBP/USD turns mildly bid to 1.3042 amid Monday’s Asian session. The pair fails to extend the previous four-day fall while taking a U-turn from 50-day SMA.

Even so, prices are likely to find challenges in extending the recent recovery unless breaking a descending trend line since December 13, at 1.3125 now.

If the quote remains strong above 1.3125, it can easily aim for the monthly top surrounding 1.3180 while targeting 1.3300 round-figure during further upside.

Alternatively, pair’s declines below 50-day SMA level of 1.3023 will be capped by a two-month-old rising trend line, near 1.2970.

In a case where the Bears dominate past-1.2970, November month low and 100-day SMA, around 1.2770, will become their favorite.

GBP/USD daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	1.3042
Today Daily Change	-0.0014
Today Daily Change %	-0.11%
Today daily open	1.3056

Trends
Daily SMA20	1.3091
Daily SMA50	1.3017
Daily SMA100	1.2755
Daily SMA200	1.2692

Levels
Previous Daily High	1.3098
Previous Daily Low	1.3042
Previous Weekly High	1.3213
Previous Weekly Low	1.3013
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.3064
Daily Fibonacci 61.8%	1.3077
Daily Pivot Point S1	1.3033
Daily Pivot Point S2	1.301
Daily Pivot Point S3	1.2978
Daily Pivot Point R1	1.3088
Daily Pivot Point R2	1.3121
Daily Pivot Point R3	1.3144

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold hangs near one-week low; looks to FOMC Minutes for fresh impetus

Gold is consolidating just above the $4,850 level, having touched a one-week low on Tuesday, amid mixed cues. Signs of progress in US–Iran talks dent demand for the traditional safe-haven bullion. Meanwhile, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders also seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.