GBP/USD Price Analysis: Struggles to reclaim auction above 1.2000
|
- GBP/USD has turned sideways around 1.2000 as investors await US ISM PMI data for fresh cues.
- The Cable has comfortably established below the 200-EMA at 1.2024.
- Value-buying persist in the Cable as RSI (14) managed to recover firmly after dropping inside the bearish range.
The GBP/USD pair is attempting to surpass the psychological resistance of 1.2000 in the Asian session. The Cable is displaying topsy-turvy moves in a range of 1.1960-1.2000 as investors are awaiting the release of United States ISM Manufacturing PMI data for fresh impetus.
Meanwhile, the US Dollar Index (DXY) is displaying rangebound moves around 104.20. S&P500 futures are displaying marginal gains after a sell-off on Tuesday. The 10-year US Treasury yields have dropped further to 3.73%.
Earlier, the Cable delivered a breaking of the consolidation formed in a range of 1.2000-1.2123 formed on a four-hour scale. The pair is attempting to regain an auction profile above the psychological resistance of 1.2000.
The major has comfortably established below the 200-period Exponential Moving Average (EMA) at 1.2024, which indicates that the long-term trend is bearish now. Also, the 50-EMA at 1.2054 is acting as a major barricade for the Pound Sterling.
It is worth noting that the Relative Strength Index (RSI) (14) managed to rebound firmly after dropping inside the bearish range of 20.00-40.00, which indicates that the context of value-buying is still present.
For a downside move, the Cable needs to break down the round-level support at 1.1900 forcefully, which will drag the major toward November 11 high at 1.1855. A slippage below the latter will expose Cable to November 21 low of around 1.1778.
Alternatively, a surprise break above Friday’s high at 1.2100 will drive the Cable toward December 21 high at 1.2147 followed by December 21 high around 1.2200.
GBP/USD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.