Are you sure you want to exist?
MTrading Team • 2024-05-09

100-SMA prods GBPUSD bears on BoE Super Thursday

100-SMA prods GBPUSD bears on BoE Super Thursday

GBPUSD stays defensive at the lowest level in a week, snapping a two-day losing streak, as the pair traders await the Bank of England’s (BoE) Monetary Policy Announcements, as well as the quarterly monetary policy report that makes the day a “Super Thursday”. It’s worth noting that the 100-SMA puts a short-term trading floor under the prices near 1.2480, especially amid the downbeat RSI suggesting a pause in the previous fall. However, the bearish MACD signals and the quote’s sustained downside break of a two-week-old support line, now immediate resistance surrounding 1.2515, and clear trading beneath a downward-sloping trend line resistance stretched since mid-March, at 1.2585 at the latest, keeps the sellers hopeful. Even if the Pound Sterling gains support from the BoE and rises past 1.2585, the monthly high of 1.2634 will be the last defense of the bears before giving control to the bulls.

Meanwhile, a downside break of the 100-SMA support of 1.2480, as well as the BoE’s inability to convince the GBPUSD bulls, will resume a south run targeting the 1.2400 threshold. In a case where the Cable bears keep the reins past 1.2400, the yearly bottom marked in April surrounding 1.2300 and the 61.8% Fibonacci Extension (FE) of the quote’s March-May moves, near 1.2265, will be in the spotlight ahead of the late 2023 bottom of near 1.2067.

Overall, the GBPUSD pair remains in a bearish trend on the BoE Super Thursday despite the latest consolidation. Hence, even a surprise rebound should not be considered a bullish sign.

Join us on FB and Telegram to stay updated on the latest market events.