Range Markets

  • GBP/USD eases from the highest levels since April 2018 marked the previous day.
  • Bearish MACD, expected pullback from multi-day peak favor sellers.
  • 200-HMA offers strong support, bulls eye the early April lows.

Following its run-up to the 34-month high, GBP/USD recedes to 1.3830 amid Thursday’s Asian session.

In doing so, the cable sellers take advantage of bearish MACD and ease of marking a correction while targeting an upward sloping trend line from February 04, at 1.3823 now.

While a clear break of the stated support line can direct GBP/USD sellers toward the monthly low of 1.3566, the 1.3800 round-figure and 200-HMA level of 1.3713 can offer intermediate halts during the fall.

Meanwhile, an upside clearance of 1.3866 will renew buying pressure towards the 1.3900 threshold, for now.

Should the GBP/USD bulls remain dominant past-1.3900, the April 2020 peak surrounding 1.3965 and the 1.4000 psychological magnet will be the key to watch.

Overall, GBP/USD stays in an uptrend but the risk of consolidation can’t be ruled out.


Trend: Pullback expected

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