- GBP/USD fades bounce off the five-week-old support line, mildly offered of late.
- Bearish MACD signals suggest another attempt to break short-term support.
- Monthly horizontal resistance, December’s peak adds to the upside barriers.
GBP/USD renews its intraday low near 1.2070 during the first loss-making day in three, despite the market’s inaction during early Monday.
In doing so, the Cable pair takes a U-turn from the 200-day Exponential Moving Average (EMA) to recall the bears. Also keeping the GBP/USD sellers hopeful are the bearish MACD signals,
It’s worth noting, however, that a one-month-old ascending support line, close to 1.2020 by the press time, restricts short-term GBP/USD downside.
Following that, the late November swing low near 1.1900 could act as the last defense of the GBP/USD.
In a case where GBP/USD remains bearish past 1.1900, the odds of witnessing a slump towards the 38.2% Fibonacci retracement level of September-December 2022 upside, near 1.1650, can’t be ruled out.
Alternatively, a clear upside break of the 200-day EMA level surrounding 1.2115 could propel GBP/USD towards a one-month-long resistance line, close to 1.2355 at the latest.
Should the GBP/USD bulls occupy the driver’s seat past 1.2355, the previous monthly peak surrounding 1.2450 should gain the market’s attention.
Overall, GBP/USD is likely to witness a downside but the room towards the south appears limited.
GBP/USD: Daily chart
Trend: Limited downside 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
EUR/USD falls to multi-week lows near 1.1000 after US CPI data
EUR/USD stays under bearish pressure and declines to the 1.1000 area in the second half of the day on Wednesday. The data from the US showed that the core CPI rose 0.3% in August, surpassing the market expectation of 0.2% and supporting the USD.
GBP/USD remains under pressure, declines toward 1.3000
GBP/USD trades in negative territory below 1.3050 in the American session on Wednesday. The US Dollar stays resilient against its rivals and weighs on the pair after the latest data showed that the core CPI rose more than expected in August.
Gold trades back down to $2,500 after release of US CPI data
Gold touches the top of its range and then falls back down to $2,500 after the release of US inflation data on Wednesday. The benchmark 10-year US Treasury bond yield rebounds on stronger-than-forecast monthly core CPI print and drags XAU/USD lower.
Bitcoin holds $56,000 level as US ETFs record second consecutive day of inflows
Bitcoin (BTC) retraces slightly on Wednesday and approaches the critical support level of $56,000; if it holds, it might pave the way for further recovery. However, Wednesday’s upcoming US Consumer Price Index (CPI) report could trigger volatility in the largest cryptocurrency by market capitalization.
Five Fundamentals for the week: Jittery markets fear the ECB, US inflation and more Premium
Is there still a chance? Investors hope for a 50-bps rate cut from the Fed but also fear a global recession is underway. The world's three largest economies, the US, China, and the eurozone, are set to rock global markets.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.