GBP/USD PRICE ANALYSIS: ERASES GAINS AS BEARS MOVE IN POST-WEAK US DATA
- GBP/USD falls as concerns of potential US recession weigh on markets.
- Technicals suggest neutral to downward bias, marked by lower highs and lows.
- Support levels: 1.2600 (daily MAs), 1.2560 (200-DMA), 1.2500, 1.2445 (May 9 low), 1.2299 (YTD low).
- Resistance points: 1.2700, 1.2750, 1.2800, 1.2868 (June 12 high).
The Pound Sterling erased earlier gains during Monday’s session against the Greenback, even though US economic data showed the economy is slowing down. Per the market’s reaction to the data, it could be seen that worries about a recession in the US loom as US equities tumbled, along with the US Dollar, as market participants await US jobs data on Friday. The GBP/USD trades at 1.2643, down 0.01%.
- GBP/USD falls as concerns of potential US recession weigh on markets.
- Technicals suggest neutral to downward bias, marked by lower highs and lows.
- Support levels: 1.2600 (daily MAs), 1.2560 (200-DMA), 1.2500, 1.2445 (May 9 low), 1.2299 (YTD low).
- Resistance points: 1.2700, 1.2750, 1.2800, 1.2868 (June 12 high).
The Pound Sterling erased earlier gains during Monday’s session against the Greenback, even though US economic data showed the economy is slowing down. Per the market’s reaction to the data, it could be seen that worries about a recession in the US loom as US equities tumbled, along with the US Dollar, as market participants await US jobs data on Friday. The GBP/USD trades at 1.2643, down 0.01%.
GBP/USD Price Analysis: Technical outlook
Technically speaking, the GBP/USD is neutral to downward biased, as seen by a successful series of lower and lower lows, dragging the pair from year-to-date (YTD) highs of 1.2894 toward current exchange rates. However, although lagging, the daily moving averages (DMAs) are capping the pair’s downside at around 1.2600, which, once cleared, could pave the way for further downside.
In that event, the GBP/USD next support would be the 200-DMA at 1.2560, followed by 1.2500 ahead of the May 9 cycle low of 1.2445. A breach of the latter will expose the YTD low of 1.2299.
On the other hand, if buyers reclaim 1.2700, the next resistance would be 1.2750. Once hurdle, the next stop would be 1.2800 before challenging the June 12 high of 1.2868
Technically speaking, the GBP/USD is neutral to downward biased, as seen by a successful series of lower and lower lows, dragging the pair from year-to-date (YTD) highs of 1.2894 toward current exchange rates. However, although lagging, the daily moving averages (DMAs) are capping the pair’s downside at around 1.2600, which, once cleared, could pave the way for further downside.
In that event, the GBP/USD next support would be the 200-DMA at 1.2560, followed by 1.2500 ahead of the May 9 cycle low of 1.2445. A breach of the latter will expose the YTD low of 1.2299.
On the other hand, if buyers reclaim 1.2700, the next resistance would be 1.2750. Once hurdle, the next stop would be 1.2800 before challenging the June 12 high of 1.2868
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