- The cable has entered the highest auction area which was recorded in the downside journey.
- Bulls have crossed the 200-EMA for the first time in the past 11 weeks.
- The RSI (14) has established into the bullish range of 60.00-80.00 comfortably.
The GBP/USD pair is struggling to smash the psychological resistance of 1.1500 after a juggernaut rally. The asset is gathering momentum at elevated levels and is expected to continue its six-day winning streak after overstepping Tuesday’s high at 1.1490. The major witnessed a responsive buying action after forming a buying tail on September 26.
On a four-hour scale, the cable has entered into the demon’s arena where most of the trading activity took place while the downside journey of the asset. The major has poked the prior balanced area in a 1.1370-1.1770 range, which serves as the highest auction territory.
The asset has crossed the 200-period Exponential Moving Average (EMA) at 1.1400 for the first time after a period of 11 weeks. Also, a bullish crossover delivered by the 20 and 50-EMAs at 1.1051 adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has been established in the bullish range of 60.00-80.00, which indicates that bullish momentum has been activated.
A minor pullback to near September 19 low at 1.1355 will serve as a bargain buy to the market participants, which will drive the asset towards the psychological resistance at 1.1500, followed by an August 31 high at 1.1694.
On the flip side, a downside break of the September 30 low at 1.1235 will drag the cable towards September 28 high at 1.0916. A slippage below the latter will drag the asset further towards September 29 low at 1.0763.
GBP/USD four-hour chart
-638005196153946407.png)
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
EUR/USD trades sideways below 1.0450 amid quiet markets
EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familiar range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro.
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision
GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick.
Gold price sticks to modest gains; upside seems limited amid USD dip-buying
Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 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.