GBP/USD Price Analysis: Struggles to find acceptance above 100-hour SMA
|- GBP/USD struggled to capitalize on the intraday positive move beyond 100-hour SMA.
- Neutral technical set-up warrants caution before placing any aggressive directional bets.
The GBP/USD pair gained some positive traction on Tuesday and built on the previous day's solid bounce from the vicinity of the 1.3800 mark or weekly lows. The pair jumped back above the 1.3900 mark, albeit failed to capitalize on the momentum or find acceptance above 100-hour SMA.
Any subsequent move up is likely to confront a stiff resistance near a short-term descending trend-line extending from near three-year tops touched on February 24. The mentioned barrier is pegged near the 1.3940-50 region and should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on hourly/daily charts have been struggling to gain meaningful traction but are holding just above the positive territory. That said, the lack of any follow-through buying warrants some caution for bullish traders ahead of the critical FOMC monetary policy decision.
This, in turn, makes it prudent to wait for a sustained move beyond the trend-line resistance before confirming that the recent corrective fall has run its course and positioning for any further gains. The GBP/USD pair might then make a fresh attempt to conquer the 1.4000 psychological mark.
A subsequent strength beyond the monthly swing highs, around the 1.4015 region has the potential to push the GBP/USD pair to the 1.4060-65 intermediate hurdle en-route the 1.4100 mark. The momentum could further get extended towards the recent daily closing highs, around the 1.4135-40 region.
On the flip side, any meaningful slide below the 1.3900 mark is likely to find some support near mid-1.3800s. This is followed by the overnight swing lows, around the 1.3810 region, which if broken decisively will set the stage for an extension of the recent corrective slide from multi-year tops.
GBP/USD 1-hourly chart
Technical levels to watch
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