- GBP/USD trades in positive territory for the second consecutive day around 1.2160 amid the USD softness.
- The pair holds below the 50- and 100-hour EMAs; RSI is located above 50 in the bullish territory.
- The key resistance level will emerge at the 1.2200-1.2210 zone; the initial support level is located at 1.2110.
The GBP/USD pair posts modest gains above the mid-1.2100s during the Asian session on Thursday. In the absence of the top-tier economic data from the UK docket, the major pair remains at the mercy of the US Dollar (USD) price dynamics. GBP/USD currently trades near 1.2160, gaining 0.21% on the day.
That said, the rebound of the pair is supported by the weaker US Dollar (USD) following the softer US labor market data. Automatic Data Processing (ADP) reported on Thursday that the US private payrolls for September rose by 89,000 from the previous reading of 180,000, below the market expectation of 153,000. This figure posted the lowest level since January 2021.
Technically, GBP/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, which means further downside looks favorable. Furthermore, the Relative Strength Index (RSI) holds above 50 in the bullish territory, indicating that buyers are likely to retain control soon.
The critical resistance level for GBP/USD will emerge near the upper boundary of the Bollinger Band and a psychological round figure at the 1.2200-1.2210 region. The additional upside filter to watch is near the 100-hour EMA at 1.2257. The next barrier for the pair is seen at 1.2270 (a high of September 29). Further north, a high of September at 1.2324 will be the next stop.
On the other hand, the initial support level is located at 1.2110 (a low of September 27). The next contention level will emerge near a low of October 3, en route to the lower limit of the Bollinger Band at 1.2028. Any decisive follow-through selling below will see a drop to 1.1965 (a low of February 16).
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. 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
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD weakens below 1.0850 as the leftist New Popular Front leads exit poll in French election
The EUR/USD pair trades on a weaker note near 1.0830 on Monday during the early Asian trading hours. The political uncertainty in France after the second voting round of French parliamentary elections on Sunday exerts some selling pressure on the Euro.
Gold edges lower below $2,400, PBoC refrains from gold purchases for second month
Gold price attracts some sellers near $2,385, snapping the three-day winning streak during the early Asian trading hours on Monday. The downtick of the yellow metal is backed by the modest rebound of the Greenback and the Chinese central bank paused Gold buying for the second month.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.