Flaunt Weekly
HomeEntertainmentGBP/USD Price Analysis: Bounces off 50-HMA within weekly trading range
GBP/USD Price Analysis:  Bounces off 50-HMA within weekly trading range

GBP/USD Price Analysis: Bounces off 50-HMA within weekly trading range

  • GBP/USD rebounds from intraday low, stays indecisive after reversing from one-month high the previous day.
  • One-week-old ascending trend line, weekly range’s lower band strengthens 1.2140-35 support confluence.
  • Bulls need validation from 1.2205 to probe mid-February highs.

GBP/USD reverses from the intraday low surrounding 1.2145 amid the initial hour of Wednesday’s London open. The Cable pair, however, stays within a week-long trading range between 1.2135 and 1.2205.

The quote’s latest rebound could be linked to its U-turn from the 50-Hour Moving Average (HMA), around 1.2150 by the press time. However, the sluggish MACD signals suggest the continuation of the grind inside the aforementioned 70-pip range established since Monday.

That said, an upward-sloping trend line from the last Wednesday adds strength to the 1.2135 support.

It should be noted that the 100-HMA and the 200-HMA, respectively near 1.2060 and 1.2000 in that order, act as additional downside filters before giving control to the GBP/USD bears.

Alternatively, a successful break of 1.2205 enables the Cable pair buyers to challenge the mid-February high surrounding 1.2270.

In a case where the GBP/USD price remains firmer past 1.2270, the 1.2300 can act as an intermediate halt before highlighting the 1.2445-50 key horizontal hurdle that restricted the pair’s upside during late 2022 and early 2023.

Overall GBP/USD remains on the bull’s radar despite the previous day’s pullback from a one-month high.

GBP/USD: Hourly 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.

Read More

David Carroll

David Carroll is a Journalist at Flaunt Weekly.

Magazine made for you.