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GBPUSD bounces off 200-SMA ahead of UK PMIsGBPUSD snapped a three-day winning streak the previous day as the UK’s Autumn Statement failed to impress Cable buyers despite offering tax cuts and higher wages. The reason could be linked to the mixed economic outlook for Britain and a corrective bounce in the US Treasury bond yields. However, the 200-SMA defends the Pound Sterling buyers so far on the Thanksgiving Holiday in the US, as well as ahead of the UK’s release of preliminary S&P Global/CIPS PMIs for November. It’s worth noting, that the upbeat RSI (14) line and the bullish MACD signals enable the pair buyers to keep the reins within a one-month-old rising channel, currently between 1.2330 and 1.2620. However, the RSI conditions are nearly overbought and hence the late June’s low and May’s peak, close to 1.2590 and 1.2680 in that order, appear tough nuts to crack for the bulls past 1.2620. Meanwhile, a daily closing beneath the 200-SMA level of 1.2450 needs validation from the downbeat prints of the UK PMIs to lure the GBPUSD sellers. Even if the quote slides beneath the 1.2450 key SMA support, the aforementioned bullish channel’s bottom line of around 1.2330 will challenge the Cable bears. It’s worth noting, however, that the Pound Sterling’s rejection of the bullish chart pattern, by a daily closing below 1.2330, will make it vulnerable to drop towards the previous monthly low of around 1.2035 and then to the 1.2000 psychological magnet, before targeting the yearly low of around 1.1800.
by MTradingGlobal
GBPUSD appears vulnerable to test multi-month-old support lineGBPUSD remains pressured at the lowest level in seven months, reversing the previous week’s corrective bounce, as the Cable traders await final prints of the UK S&P Global/CIPS PMIs for September. It’s worth noting that a clear downside break of an eight-month-old horizontal support zone joins the bearish MACD signals to keep the Pound Sterling bears hopeful. However, the oversold RSI (14) line and 50% Fibonacci retracement of October 2022 to July 2023 upside, near 1.2040, restricts the immediate downside of the pair. Following that, the 1.2000 psychological magnet and an ascending support line from November, close to 1.1890 by the press time, will entertain the bears. In a case where the quote remains bearish past 1.1890, the 61.8% Fibonacci ratio of around 1.1780 will be the last defense of the buyers. On the contrary, the previous weekly low of around 1.2110 restricts the nearby downside of the GBPUSD pair ahead of the 10-SMA level surrounding 1.2170. More importantly, the support-turned-resistance area comprising multiple levels marked since February, near 1.2310–2270, appears a tough nut to crack for the Cable pair buyers to cross past 1.2170. Should the Pound Sterling remain firmer past 1.2170, a three-month-long descending resistance line surrounding 1.2470 will be crucial for the bulls to cross before retaking control. Overall, GBPUSD is likely to remain bearish even as the downside room appears limited.
by MTradingGlobal
Gold price consolidates within symmetrical triangle above $1,900Gold price bounces off a one-week-old rising support line, as well as the 200-SMA, within a symmetrical triangle comprising levels marked since late July. Given the near-50.0 levels of the RSI and the impending bull cross on the MACD, the XAUUSD is likely to extend the latest rebound. The same highlights the 50% Fibonacci retracement of its July-August downside, near $1,937, ahead of shifting the market’s attention to the stated triangle’s top line, close to $1,947 at the latest. In a case where the bullion price remains firmer past $1,947, the monthly high of around $1,953 will act as the final defense of the bears. On the flip side, the 200-SMA and an ascending support line from the previous week limit the immediate downside of the Gold price near $1,918 and $1,916 respectively. Following that, the triangle’s lower line surrounding $1,906 and the $1,900 will be crucial to watch for the XAUUSD bears. In a case where the metal remains bearish past $1,900, the odds of witnessing a slump toward July’s low of $1,885 can’t be ruled out. Overall, the Gold Price is likely to remain sidelined within the aforementioned triangle but advocates more volatility ahead.
OANDA:XAUUSD
by MTradingGlobal
Gold buyers seek re-entry but road towards north is long and bumGold braces for the first weekly gain in five while bouncing off the multi-month low marked earlier in the week, piercing the 200-DMA of late. The upside bias gains credence from a looming bull-cross on the MACD, as well as a recovery in the RSI (14) line from the oversold territory. However, a nine-month-old previous support line, close to $1,950, precedes a downward-sloping resistance line from early May, around $1,955 at the latest, to restrict the short-term upside of the XAUUSD. Also acting as a barrier towards the north is a three-month-old horizontal resistance area surrounding the $1,985 and the $2,000 psychological magnet. In a case where the metal remains firmer past $2,000, the yearly high of around $2,067 will be in the spotlight. On the flip side, the recent low of around $1,885 holds the key to the Gold seller’s entry. Following that, the early-March swing high of near $1,858 and the YTD bottom around $1,804, quickly followed by the $1,800 threshold, will challenge the XAUUSD bears. Should there be a sustained downtrend of the bullion past $1,800, the November 2022 peak of around $1,767 will act as the final defense of the buyers. Overall, the Gold Price is likely to recover but the reversal of the multi-day-old bearish trend is still unclear to predict.
OANDA:XAUUSD
by MTradingGlobal
AUDUSD forms falling wedge but bulls need more to returnAUDUSD bears take a breather after a five-week downtrend, portraying a falling wedge bullish chart pattern around the yearly low. Adding strength to the hopes of recovery is an upward-sloping RSI line, not overbought, as well as the bullish MACD signals. However, an area comprising multiple lows marked since late May, around 0.6460-70, restricts the short-term upside of the Aussie pair. Following that, a three-month-old horizontal area and the 200-SMA, respectively near 0.6580-6600 and 0.6635, will challenge the buyers before giving them control. On the contrary, a one-week-long rising support line surrounding 0.6390 limits the immediate downside of the AUDUSD pair ahead of the stated wedge’s bottom line, close to 0.6350. In a case where the Aussie pair remains bearish past 0.6350, the November 2022 low near 0.6270 and the previous yearly bottom of around 0.6170 will be in the spotlight. Overall, AUDUSD bears run out of steam and hence suggest a corrective bounce in the pair’s price. However, the downward trend established since mid-July is more likely to prevail unless witnessing strong Aussie data and/or downbeat US statistics, as well as the dovish Fed talks and the risk-on mood.
by MTradingGlobal
AUDUSD has a long way to go before convincing bullsAUDUSD fades bounce off a three-week low while poking a two-month-old rising support line, now immediate resistance around 0.6730, on the Reserve Bank of Australia (RBA) Interest Rate Decision Day. Adding strength to the upside barrier is the 200-DMA hurdle surrounding the said 0.6730 level. Following that, a run-up towards the 50% Fibonacci retracement of February-May downside, near 0.6810, will be quick. However, the double tops around the 0.6900 round figure, close to the 61.8% Fibonacci retracement of 0.6890, can challenge the buyers before giving them control. On the contrary, the AUDUSD pullback appears elusive beyond the latest swing low surrounding 0.6620. Even if the Aussie pair drops below 0.6620, a horizontal support zone comprising levels marked since early March, near 0.6560-55, will act as the last defense of the bulls ahead of challenging the yearly bottom of 0.6458. It should be noted that the Aussie pair’s weakness past 0.6458 won’t hesitate to challenge November 2022 trough and the previous yearly low, respectively near 0.6270 and 0.6170. Overall, AUDUSD remains on the bear’s radar despite the week-start rebound and remains a good candidate for “sell the bounce”.
by MTradingGlobal
EURUSD bears have further downside to track, focus on 1.1000 EURUSD stays on the back foot ever since it reversed from a multi-month high the last week, despite the latest corrective bounce. The Euro pair’s south run also conquered the resistance-turned-support stretched from early February and gains support from the RSI’s pullback from overbought territory. Adding strength to the downside bias is the looming bear cross on the MACD. With this, the major currency pair is likely to decline further, suggesting a retest to the previous monthly high of around 1.1010. Following that, the 1.1000 psychological magnet and a two-month-old rising support line, close to 1.0940 by the press time, will test the bears. It should be noted that the 100-DMA acts as the final defense of the short-term pair buyers around 1.0885. On the contrary, the ascending trend line from February, near 1.1140 at the latest, restricts the immediate recovery of the EURUSD pair. Following that, 1.1200 and 1.1250 may check the Euro bulls before directing them to the latest peak of around 1.1275. In a case where the buyers remain dominant past 1.1275, the 1.1300 round figure may act as a validation point for the rally targeting the previous yearly of around 1.1500. During the run-up, the 1.1400 threshold can also provide an intermediate halt. Overall, EURUSD is likely to remain bearish as markets await the key central bank meeting decision, including the ECB and the Fed.
by MTradingGlobal
GBPUSD sellers should keep eyes on 1.2760 and UK PMIGBPUSD marked the first weekly loss in three while slipping beneath the 100-SMA and an upward-sloping support trend line stretched from late June. Adding strength to the downside were bearish MACD signals and the RSI line’s reversal from the overbought territory. However, the MACD teases a bull cross as the RSI hovers around the oversold territory, which in turn suggests a corrective bounce in the Cable price. The same highlights a convergence of the 200-SMA and a two-month-old rising trend line, close to 1.2760 as the key level to watch as traders await the UK PMIs for July. In a case where the Pound Sterling drops below the 1.2760 support, the odds of witnessing the quote’s slump towards the late June swing low of around 1.2590 can’t be ruled out. However, the June start swing high of around 1.2550-45 and 78.6% Fibonacci retracement of its May-July upside, near 1.2480, can test the bears before directing them to the May month’s low of around 1.2310. Meanwhile, a convergence of the 100-SMA and the previous support line from late June, close to 1.2870 at the latest, restricts the immediate upside of the GBPUSD pair. Following that, the 1.2960 and the 1.3000 psychological magnet may challenge the buyers before giving them control. In that case, the yearly high marked earlier in the month of around 1.3145 will be in the spotlight. Overall, GBPUSD is likely to witness further downside but it all depends upon the UK data and 1.2760 break.
by MTradingGlobal
GBPUSD recovery appears elusive below 1.2850GBPUSD defends the last Thursday’s rebound from the 200-EMA to brace for the first weekly gain in three. The Cable pair’s recovery also takes clues from the upbeat RSI (14) line and the bullish MACD signals, which in turn suggest room for further upside. The same highlights a three-week-old horizontal resistance zone around 1.2760-70 as the short-term key hurdle. Following that, multiple tops marked around 1.2840-50 can act as the last defense of the Pound Sterling bears. In a case where the quote remains firmer past 1.2850, the 61.8% Fibonacci Expansion (FE) of May 25 to June 29 moves, near 1.2930, followed by the 1.3000 psychological magnet, will lure the buyers. On the contrary, a broad support zone comprising levels marked since early May challenges the GBPUSD bear’s entry between 1.2690-70. Should the quote Cable bears manage to conquer the 1.2670 support, the 200-EMA level of around 1.2615 and the 1.2600 round figure will be on their radars. However, a six-week-old ascending support line, close to 1.2580 at the latest, seems a tough nut to crack for the Pound Sterling sellers, a break of which will give back powers to them. Overall, GBPUSD remains firmer but the room towards the north appears limited.
by MTradingGlobal
USDCHF stays bearish as SNB week beginsUSDCHF eyes another visit to the yearly low, after a two-week downtrend, as it braces for the Swiss National Bank (SNB) Interest Rate Decision, expected 1.75% versus 1.50% prior. In doing so, the Swiss Franc (CHF) pair fades Friday’s bounce off the lowest levels in five weeks by retreating from the 61.8% Fibonacci retracement of its May 04-31 upside. Given the below 50.0 levels of the RSI (14) line, it is likely to witness a bumpy road towards the south, suggesting a bounce off the 78.6% Fibonacci retracement level of 0.8890. In a case where the quote fails to recover from 0.8890, the yearly low of around 0.8820 marked in the last month will be in the spotlight. It’s worth noting that the pair’s weakness past 0.8820 highlights the yearly 2021 bottom surrounding 0.8757 as the last defense of the buyers. On the contrary, USDCHF recovery may initially aim for the 50% Fibonacci retracement level of 0.8980. Following that, a convergence of the 200-SMA and a one-week-old descending resistance line of around 0.9000 will be in focus. Should the quote manage to remain firmer past 0.9000, the bulls can aim for 0.9030 ahead of confronting multiple hurdles around 0.9110. It’s worth noting that the previous monthly high of around 0.9150 is the last stand for the bears, a break of which could allow the buyers to aim for the yearly high of 0.9440 marked in February.
by MTradingGlobal
EURUSD bears have a bumpy road to travelEURUSD’s failure to cheer the US Dollar’s first weekly loss in four appears less positive for the pair bears as multiple supports stand ready to offer a bumpy road toward the south. That said, a fortnight-old previous resistance line, around 1.0690 by the press time, appears the immediate support for the sellers to conquer. Following that, the previous weekly low of around 1.0635 will return to the chart. It’s worth noting, however, that the 61.8% and 78.6% Fibonacci Expansion (FE) of the pair’s May 16 to June 02 moves, respectively ear 1.0610 and 1.0565, appear tough nuts to crack for the Euro bears before approaching the lows marked in March and January, close to 1.0515 and 1.0480 in that order. Meanwhile, the EURUSD rebound needs validation from the 100-SMA hurdle, surrounding 1.0785 as we write. Should the quote manages to remain firmer past 1.0785, it can easily climb to the mid-May swing high of near 1.0900. However, multiple lows marked during early May around 1.0935-40 can challenge the pair buyers before giving them the power to challenge the 1.1090-1100 horizontal resistance comprising tops marked in May and late April. Overall, EURUSD bears appear to run out of steam but are stubborn enough to not leave the driver’s seat.
by MTradingGlobal
Gold needs to break $1,980 support for short-term downsideGold price grinds lower between a three-month-old ascending resistance line and an upward-sloping trend line from late March. That said, the quote recently bounced off a convergence of the 21-day EMA and an upward-sloping support line from March 22, close to HKEX:1 ,980, which in turn suggests the commodity’s further recovery towards the HKEX:2 ,020 immediate hurdle. However, nearly overbought RSI and nearness to the aforementioned multi-month-old resistance line, currently around HKEX:2 ,045, could challenge the XAUUSD bulls. Meanwhile, a downside break of the HKEX:1 ,980 support confluence could quickly drag the Gold price toward February’s high of around HKEX:1 ,960. Following that, 50% and 61.8% Fibonacci retracement of its late November 2022 to early April 2023 upside, near HKEX:1 ,890 and HKEX:1 ,853 in that order, could test the Gold sellers. It’s worth noting that the XAUUSD remains on the buyer’s radar unless it offers a daily closing below the 200-day EMA level of around HKEX:1 ,845. Overall, the Gold price is likely to grind higher unless breaking the HKEX:1 ,845 level. That said, a downside break of HKEX:1 ,980 can trigger the metal’s short-term fall.
OANDA:XAUUSD
by MTradingGlobal
Gold grinds between 50-EMA and 200-EMA ahead of crucial weekGold braces for the first weekly gain in five but stays within the key moving average envelope as traders eye Fed Chair Jerome Powell’s testimony and the US NFP data, up for release in the next week. It’s worth noting, however, that the bears appear to run out of steam, per the RSI and MACD conditions. As a result, a clear upside break of the 50-Exponential Moving Average (EMA), around $1,845 by the press time, could convince the buyers to retake control. Though, multiple hurdles around $1,865 and $1,890 might challenge the XAUUSD run-up before the metal can regain $1,900. Meanwhile, a surprise downturn remains unimpressive beyond the 200-EMA level surrounding $1,803. Also acting as an extra filter to the south is the $1,800 threshold. In a case where the Gold price remains bearish past $1,800, the 61.8% Fibonacci retracement level of the quote’s run-up from last November to February 2023, around $1,747, will gain the market’s attention. It should be noted that the late November low of $1,727 may act as the last resort for the buyers before totally giving up control during the metal’s weakness past $1,747. Overall, the Gold price remains sidelined but the downside momentum gains less acceptance ahead of an important week.
OANDA:XAUUSD
by MTradingGlobal
Ascending triangle teases GBPUSD bears ahead of UK PMIGBPUSD stays defensive inside a three-month-old ascending triangle, following the previous week’s rebound from the 200-DMA. Even so, downbeat oscillators join lower high formations to keep the sellers hopeful ahead of monthly PMI data from Britain. That said, the stated triangle’s lower line precedes the key moving average to challenge the Cable pair bears around 1.1990 and 1.1935 in that order. Following that, lows marked during January and mid-November 2022, close to 1.1840 and 1.1760 respectively, may challenge the bears. Also acting as short-term key support is last September’s peak surrounding 1.1735, a break of which could give a free hand to the pair sellers. Alternatively, recovery moves could aim for the three-week-old descending resistance line, near 1.2220, followed by the previous weekly high near 1.2270. In a case where GBPUSD buyers manage to cross the 1.2270 hurdle the odds of witnessing a run-up towards the multiple resistance area around 1.2450 can’t be ruled out. It’s worth noting that a successful break of the 1.2450 resistance could propel the Cable pair’s advances to May 2022 high near 1.2665. Overall, GBPUSD remains on the bear’s radar ahead of the key UK data.
by MTradingGlobal
AUDUSD stays pressured towards 0.6980-75 support confluenceDespite the latest pause, AUDUSD extends the week-start pullback from a nine-month high as the economic calendar starts spreading key releases. In doing so, the Aussie pair stays inside the monthly bullish channel. That said, the RSI retreat from overbought territory joins the downbeat MACD signals to also tease bears. Even so, a convergence of the stated channel support line and the 100-SMA highlights the 0.6980-75 zone as the key for the bear’s entry. Following that, a seven-week-old horizontal support zone near 0.6880 could challenge the quote’s further downside before placing the bear in the driver’s seat. Meanwhile, multiple highs marked around 0.7130 and the recent peak surrounding 0.7150 could challenge AUDUSD bulls. Also acting as an immediate upside hurdle is the aforementioned bullish channel’s top line, close to 0.7170 at the latest. In a case where the Aussie pair remains firmer past 0.7170, the 0.7200 round figure and May 2022 high surrounding 0.7285 could gain the buyer’s attention. Overall, AUDUSD slips from the bull’s radar but the bears need confirmation before taking control.
by MTradingGlobal
GBPUSD bulls need to cross 1.2450 to keep the reinsGBPUSD regains upside momentum, after a soft start to the week, as the Cable traders await the UK PMIs for January. It’s worth noting that the bullish MACD signals favor the latest upside but the RSI is nearly overbought, which in turn highlights the six-week-old horizontal resistance area surrounding 1.2450. Should the firmer British activity data allow the quote to cross the 1.2450 hurdle, the 61.8% Fibonacci Expansion (FE) of its November 2022 to January 2023 moves, near 1.2650, will be in focus. It’s worth noting that the May 2022 peak surrounding 1.2660 could challenge the pair buyers afterward. Alternatively, the 1.2300 and the 1.2200 round figures could entertain the GBPUSD sellers during the pair’s pullback. However, the 1.2000 psychological magnet can restrict the Cable pair’s further downside. In a case where the quote remains weak past 1.2000, the 100-EMA level surrounding 1.1980 and the monthly low of 1.1840 will gain the market’s attention as the last defense of the pair buyers. Overall, GBPUSD remains on the buyer’s radar ahead of the key UK data but the upside room appears limited.
by MTradingGlobal
GBPUSD bears prepare for fresh yearly low, 1.1620 in focusGBPUSD dropped consecutively during the last four days to approach the yearly low marked in July, before recently bouncing off towards 1.1800. The bears, however, appear more dreadful this time as the RSI has comparatively more space to hit the oversold territory than the previous south-run to refresh the multi-day low of 1.1760. That said, the 1.1760 level may test the sellers before directing them to a convergence of the three-month-old descending trend channel and 61.8% Fibonacci Expansion (FE) of April 25 to August 01 moves, around 1.1620. Should the quote fail to reverse from the 1.1620 support confluence, the March 2020 lows near 1.1410 will gain the market’s attention. Alternatively, recovery moves remain elusive until the quote rises back beyond June’s low of 1.1935. Following that, the 1.2000 psychological magnet could lure the buyers. It should be noted, however, that the GBPUSD run-up beyond 1.2000 will challenge the convergence of the 21 DMA and 50 DMA, around 1.2080-85, which will be crucial to watch for a short-term trend change. To sum up, GBPUSD is on the bear’s radar for a fresh yearly low as traders brace for the flash PMIs for August.
by MTradingGlobal
Gold fades bearish channel breakout above $1,700Gold fails to extend the post-ECB rebound from yearly low, not to mention unable to extend the bearish channel breakout. Given the metal’s sustained trading below the key SMA and the recently downbeat oscillators, the bullion is likely to remain pressured. Hence, sellers can see the latest bounce as an opportunity until the quote stays below the 100-SMA level surrounding $1,745. Following that, a downward sloping resistance line from June 13 and a horizontal area from mid-May, respectively around $1,768 and $1,785-87, will be the final defenses for bears. On the contrary, pullback moves could aim for the two-week-old descending trend channel’s upper line, previous resistance around $1,708 before the $1,700 threshold and the latest lows lows surrounding $1,680 can entertain gold bears. It’s worth noting, however, that the aforementioned channel’s support line, at $1,668 by the press time, will precede the mid-April 2020 low near $1,660 to challenge the metal’s further downside. Overall, gold bears remain in the driver’s seat despite the corrective pullback as traders brace for July’s PMIs and July 26-27 Fed meeting.
OANDA:XAUUSDShort
by MTradingGlobal
AUDUSD keeps door open for bears targeting 0.6800Despite the recent rebound, AUDUSD holds onto the downside break of fortnight-old support amid an absence of oversold RSI, which in turn hints at the pair’s likely to rush towards refreshing yearly low. However, the latest bottoms surrounding 0.6850 and 0.6830 may act as intermediate halts during the fall. That said, the 61.8% Fibonacci Expansion (FE) of June 03-16, at 0.6800, will be in the spotlight. In a case where the quote remains bearish past 0.6800, the late 2018 lows near 0.6745 could become a buffer before directing the bears towards the 2019 trough close to 0.6670. Meanwhile, the corrective pullback may poke the support-turned-resistance line from mid-June, at 0.6900 by the press time, a break of which could escalate the recovery towards the weekly resistance line close to 0.6955. It should be noted, however, that the 100-SMA and the 200-SMA, respectively near 0.6990 and 0.7035, could challenge the AUDUSD bulls afterward. Should the prices rally beyond 0.7035, the June 16 peak of 0.7069 might act as the last defense for bears. To sum up, AUDUSD has already flashed a bearish signal to refresh yearly lows, mainly due to its risk-barometer status.
by MTradingGlobal
GBPUSD stays ready to refresh yearly low ahead of UK/US PMIsGBPUSD fades bounce off yearly low as the cable traders await the UK and the US preliminary PMIs for June. Bearish MACD signals and steady RSI also backs the downside bias. That being said, May’s low of 1.2155 and the 1.2000 psychological magnet can act as immediate supports ahead of the latest trough surrounding 1.1933. In a case where the pair sellers dominate past 1.1933, the 78.6% Fibonacci Expansion (FE) of late March-May moves, near 1.1760, as well as a downward sloping trend line from mid-March around 1.1590, will be in focus. On the contrary, a convergence of the 20-DMA and a two-month-old horizontal area surrounding 1.2410-20 appears a tough nut to crack for the GBPUSD bulls during the recovery. Adding to the upside filters is a 10-week-long resistance line and 50-DMA, respectively around 1.2460 and 1.2510. It’s worth noting that a clear upside break of the 1.2510 enables the pair buyers to aim for May’s top of 1.2666. To sum up, GBPUSD is likely to remain bearish unless the quote rises past 1.2510. Considering that, today’s PMIs are less likely to offer any incentive to buyers unless being extremely strong, which is less expected.
by MTradingGlobal
EURUSD stays on the bull’s radar despite recent pullbackEURUSD consolidates the biggest daily gains in nearly three months around a fortnight top during Tuesday. In doing so, the major currency pair retreats from a weekly ascending trend channel’s resistance line amid an overbought RSI. However, the quote remains beyond the 200-SMA and previous resistance line from late March, respectively around 1.0650 and the 1.0560. Adding strength to the 1.0560 support is the lower line of the aforementioned channel. It’s worth noting that the 100-SMA level of 1.0525 and April’s low of 1.0470 also challenge the pair’s weakness past 1.0560. On the flip side, a fresh run-up will aim for another battle with the stated channel’s resistance line, near 1.0710 at the latest. Also acting as the key upside hurdle is the 50% Fibonacci retracement of the March-May downside, close to 1.0765. In a case where EURUSD rises past 1.0765, the bulls can aim for late April’s swing high surrounding 1.0935. Overall, EURUSD bears need to stay cautious before taking any major positions as the quote is yet to defy the previous breakouts.
by MTradingGlobal
GBPUSD signals further losses, UK data, BOE’s Bailey eyedGBPUSD extends pullback from 1.3090 ahead of the key UK data, as well as a speech from the BOE Governor Andrew Bailey, during early Friday. The downside bias also gains support from the sluggish RSI and MACD, which in turn suggests the pair’s further weakness towards the support line of a six-week-old triangle, near 1.2990 at the latest. Following that, the monthly low and 61.8% Fibonacci Expansion (FE) of the March-April moves, respectively around 1.2970 and 1.2945, will lure the pair sellers. Alternatively, recovery moves will aim for the stated triangle’s upper line, surrounding 1.3090. Also acting as the short-term key resistance is the 200-SMA level close to the 1.3100 threshold. Should the quote rises past 1.3100, the mid-month high of 1.3146 and the monthly peak of 1.3166 may test the GBPUSD buyers. Following that, the 61.8% Fibonacci retracement level close to 1.3170 will act as an additional challenge for the bulls before retaking the controls.
Short
by MTradingGlobal