A bullish reversal has been triggered as the asset has overstepped 38.2% Fibo retracement.The asset is comfortably balancing above the 200-EMA.The RSI (14) has shifted into a 60.00-80.00 range, which adds to the upside filters.
The GBP/USD pair is sensing a mild selling pressure near 1.2660 after a vertical upside move in the Asian session. The cable has remained in the grip of bulls after hitting the monthly lows at 1.2155. A two-day winning streak has been continued by the pound bulls on Friday after overstepping Thursday’s high at 1.2621.
On a four-hour scale, the cable has overstepped 38.2% Fibonacci retracement (which is placed from March 23 high at 1.3300 to May 13 low at 1.2155) at 1.2590. Usually, overstepping of 38.2% Fibo retracement is considered as a bullish reversal in the counter.
The asset has comfortably established above the 200-period Exponential Moving Average (EMA) at 1.2613, which adds to the upside filters. Also, the asset holds above the 50-EMA near 1.2500.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals the strength of the sterling bulls.
A minor pullback move towards the 200-EMA at 1.2613 will be an optimal buying opportunity for investors, which will drive the major towards Friday’s high at 1.2667, followed by the round-level resistance at 1.2700.
On the flip side, the greenback bulls could regain control if the asset drops below weekly lows at 1.2471. An occurrence of the same will drag the asset towards 23.6% Fibo retracement at 1.2415, followed by May 9 low at 1.2260.
EUR/USD holds above 1.0700 after US inflation data
EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.
EUR/USD News
GBP/USD trades above 1.2600 as dollar struggles to find demand
GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April.
GBP/USD News
Gold pulls away from daily highs, holds above $1,850
Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.
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