GBP/USD Price Analysis: Again fails to keep 100-day SMA breakout
GBP/USD eases from 1.2490 to currently around 1.2465 during the initial hour of Tokyo open on Thursday. The cable takes a U-turn from one-week-old to defy its previous day’s break of 100-day SMA, which becomes frequent since the mid-June. As a result, sellers are jostling with a 100-day SMA level around 1.2460 to revisit the falling trend line from June 16, at 1.2400 now.
It should, however, be noted that the pair’s further weakness past-1.2400 will be confined by an upward sloping trend line from May 18 and 38.2% Fibonacci retracement of March-June upside, near 1.2275/70.
GBP/USD Forecast: Bullish run to continue once above 1.2505
The British Pound advanced against its American rival for a second consecutive day, with the pair reaching a daily high of 1.2490. The advance was backed by the better market mood and upbeat IK data, as the Markit Manufacturing PMI rose to 50.1 in June from 40.7 in May, in line with the preliminary estimate. Things, however, are not doing so well in the Brexit front. German Chancellor Angela Merkel said that the European Union needs to be prepared for the possibility that they may not be able to reach an agreement with the United Kingdom.
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