- GBP/USD bounces off 200-HMA to pare Wednesday’s losses, lacks clear directions of late.
- UK/US PMIs, US ADP Employment Change decorate the calendar.
- Steady RSI, sluggish MACD signals keep Cable buyers on the table.
- Three-week-long horizontal region appears strong upside hurdle; Pound Sterling bears aim for 1.2660 after 200-HMA break.
GBP/USD picks up bids to reverse the latest daily losses while defending the 1.2700 round figure as it prints the 1.2705 mark amid the early hours of Thursday’s Asian session. In doing so, the Cable pair bounces off the 200-Hour Moving Average (HMA).
Also read: GBP/USD drops below 1.2700 post FOMC minutes release
It’s worth noting that the Pound Sterling’s latest rebound from the key moving average justifies the steady RSI (14) line, as well as sluggish MACD, which in turn suggests the pair’s another attempt to cross a downward-sloping resistance line from June 27, at 1.2735 by the press time.
Following that, the 61.8% Fibonacci retracement of June 16-29 fall, at 1.2750, can challenge the Cable buyers before directing them to a three-week-old horizontal resistance area surrounding 1.2805-10.
In a case where the GBP/USD price remains firmer past 1.2810, the odds of witnessing a tough fight to cross the previous monthly high of around 1.2850, which is also the yearly peak, can’t be ruled out.
On the flip side, a clear break of the 200-HMA level of 1.2690 can quickly fetch the Cable pair towards the late June swing high of around 1.2660. However, the June 29 bottom surrounding 1.2590 can challenge the GBP/USD bears afterward.
Should the Pound Sterling bears smash the 1.2590 level, they will aim for the previous monthly low of 1.2368.
GBP/USD: Hourly chart
Trend: Limited recovery expected
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD rebounds above 1.2950 after BoE policy announcements
GBP/USD trades in positive territory above 1.2950 on Thursday. The Bank of England (BoE) lowered the policy rate by 25 basis points as expected but the upward revision to inflation projections helped the pair edge higher. Market focus now shifts to the Fed's policy decisions.
EUR/USD extends recovery toward 1.0800 as USD retreats ahead of Fed
EUR/USD continues to push higher toward 1.0800 on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trump win-inspired USD longs ahead of the Federal Reserve's highly-anticipated policy announcements.
Gold rebounds above $2,680, awaits Fed rate decision
Gold recovers following Wednesday's sharp decline and trades above $2,680. The benchmark 10-year US Treasury bond yield edges lower after Trump-inspired upsurge, allowing XAU/USD to hold its ground ahead of the Fed policy decisions.
Federal Reserve expected to deliver 25 bps interest-rate cut, shrugging off Trump victory
The Federal Reserve is widely expected to lower the policy rate after Donald Trump won the US presidential election. Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.