- GBP/USD treads water as bulls and bears jostle between crucial resistance and support.
- Looming bear cross on MACD, failure to cross 1.2450 hurdle tease sellers.
- Two-week-old ascending trend line, 200-SMA limit downside moves.
- RSI conditions suggest further grinding towards the north.
GBP/USD struggles for clear directions as it floats around 1.2330 amid the initial hour of London open on Thursday. In doing so, the Cable pair trades within an important trading region amid contrasting oscillators.
That said, a five-week-old horizontal resistance area restricts the GBP/USD pair’s immediate upside to around 1.2450 while an ascending trend line from January 06, close to 1.2260 at the latest, challenges the bears.
It’s worth noting that the MACD signals are losing the bullish bias but the RSI (14) defends the two-week-old bullish bias despite the latest retreat.
In addition to the 1.2260 support, the 200-SMA level surrounding 1.2155 and the 1.2000 psychological magnet also challenge the GBP/USD sellers, making it harder for them to retake control.
Should the quote drops below the 1.2000 mark, a south-run to refresh the monthly low, currently around 1.1841, can’t be ruled out.
Alternatively, an upside break of 1.2450 will confirm the “rounding bottom” bullish chart pattern that theoretically suggests a rally towards 1.3050.
However, the May 2022 high of 1.2665 and the late April 2022 low of 1.2975 could act as additional upside filters to challenge the GBP/USD buyers during the aforementioned rally.
GBP/USD: Four-hour chart
Trend: Sideways
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 clings to modest daily gains, stays below 1.1000
EUR/USD trades modestly higher on the day but remains slightly below 1.1000. The improving risk mood makes it difficult for the US Dollar to build on Thursday's gains and helps the pair hold its ground ahead of the weekend.
GBP/USD climbs to multi-week highs above 1.2900
GBP/USD preserves its bullish momentum on Friday and trades at its highest level in three weeks slightly above 1.2900. The positive shift seen in risk sentiment causes the US Dollar to stay under bearish pressure, allowing the pair to extend its uptrend.
Gold hits new record high, closes in on $2,500
Gold keeps its bullish stance and trades at a new all-time high near $2,490 in the American session on Friday. The benchmark 10-year US Treasury bond yield loses nearly 1% on the day below 3.9%, fuelling XAU/USD's rally ahead of the weekend.
Dogecoin price is set for a downturn as it encounters its resistance barrier
Dogecoin price is testing the resistance around the 100-day EMA at $0.1073, with an impending decline ahead. On-chain data shows DOGE's daily active addresses decreasing and dormant wallets moving again, signaling a bearish move.
Easing inflation worries despite robust sales data
The market mood got a further boost yesterday after the latest data release from he US hinted that the economy is not doing that bad, after all.