MTradingGlobal

GBPUSD struggles to extend bounce off 21-DMA post UK GDP

FX:GBPUSD   British Pound / U.S. Dollar
GBPUSD fails to cheer upbeat UK GDP figures as market plays await fresh clues to confirm the Fed tapering chatters. Even so, the cable keeps the previous day’s rebound from 21-DMA amid firmer RSI , suggesting further recovery towards the 1.3900 round figure. However, a convergence of 21-DMA and a downward sloping trend line from June 11, around 1.3925-30, becomes the key hurdle. In a case where the pair buyers cross 1.3930 resistance, July’s top surrounding 1.3985 may test the bulls before offering them a free pass to ride beyond the 1.4000 psychological magnet.

Meanwhile, a daily closing below the 21-DMA level of 1.3830 becomes necessary for the Sterling bear’s entry. Following that, the early July’s low near 1.3730 and bottoms marked in March and April, around 1.3670, will challenge the GBPUSD sellers. Although the quote is likely to consolidate around 1.3670 before declining further, a clear south-run below the same horizontal support may not hesitate to visit the previous month’s low, near 1.3570.

Comments