GBP/USD Price Analysis: 200-HMA probes break of two-week-old trendline under 1.2600
GBP/USD keeps the early-day bounce off 1.2550 while trading around 1.2560 ahead of the Tokyo open on Tuesday. Although the break of a two-week-old rising trend line dragged the quote to a four-day low, 200-HMA gain supports from oversold RSI conditions to challenge the bears.
As a result, the quote’s bounce to regain 1.2600 can’t be ruled out. However, any further upside depends upon how well the buyers manage to conquer 1.2665/70 area comprising highs marked on Thursday and Monday.
Should the bulls successfully clear 1.2670 resistance, 1.2715 and June month top near 1.2815 will be on their radars. Meanwhile, a downside break below 200-HMA level of 1.2545 will attack 1.2500 round-figures to portray the bears’ dominance.
GBP/USD Forecast: Pound weakens despite limited dollar’s demand
The GBP/USD pair traded as high as 1.2665 on the back of risk-appetite but was unable to hold on to gains, spending most of the last two sessions battling to retain the 1.2600 threshold, to finally plunge to the current 1.2570 price zone. Chatter on possible negative rates and the lack of progress in Brexit talks towards a trade deal with the EU weighed on Pound. Bank of England Governor Bailey was on the wires this Monday, saying that there are signs of economic recovery, but adding that there’s a long way to go. Meanwhile, UK PM Johnson said that the government got the virus under control across the country, adding the importance of wearing a face-covering in closed environments. Johnson added guidance on face marks will be out in the next few days.
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