GBP/USD cracking 1.2400 could trigger a bearish resumption, exposing 100 and 200-day EMAs at 1.2173.
After a tranche of UK and US economic data, GBP/USD stays in sideways choppy trading, keeping the pair scrambling for direction following the last three days of uncertainty. From a technical perspective, three doji’s in a row suggests neither buyers’ nor sellers’ commitment to open fresh positions. Hence, GBP/USD is trading at 1.2439 after printing a low at 1.2367, below the 20-day Exponential Moving Average (EMA).
GBP/USD Price Action
Friday’s session was titled downwards, but since the early North American session, the GBP/USD aimed up, about to erase its earlier losses. Although the GBP/USD warrants further upside, price action in the last few days suggests buyers might be losing momentum. Indicators, like the Relative Strength Index (RSI), turned flat though tilted downwards, heading into neutral territory. At the same time, the Rate of Change (RoC) edged lower when compared to Thursday’s price action, suggesting that buying pressure is fading.
Therefore, the GBP/USD path of least resistance is downwards. The GBP/USD needs to crack the 1.2400 figure for a bearish resumption. Once cleared, the pair could dive towards the 20-day EMA at 1.2386, followed by the confluence of the April 3 low and the 50-day EMA at 1.2274/76. A breach of the latter and the GBP/USD could plunge toward the confluence of the 100 and 200-day Emas, around 1.2173.
On the flip side, if GBP/USD stays above 1.2400, it could test the April 19 cycle high at 1.2474. Buyers reclaiming the latter, upside risks will clear at 1.2500, followed by the YTD high at 1.2546.
EUR/USD has regained its traction and climbed above 1.0950 after having dropped below that level with the immediate reaction to better than expected S&P Global PMI figures from the US. The pair remains on track to end the choppy week virtually unchanged.
EUR/USD News
GBP/USD stabilizes above 1.2400 heading into weekend
GBP/USD has staged a rebound and seems to have stabilized above 1.2400 following the quick drop seen after the upbeat PMI figures from the US. Earlier in the day, weak UK Retail Sales data weighed on Pound Sterling but the pair looks to end the week flat.
GBP/USD News
Gold drops below $1,980 as US yields push higher on US data
Gold price extended its daily slide and broke below $1,980 on Friday. On the back of better-than-forecast S&P Global PMI data releases from the US, the benchmark 10-year US Treasury bond yield gained traction and rose nearly 1% to weigh on XAU/USD.
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