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MTrading Team • 2024-03-12

GBPUSD hovers above 1.2770 resistance-turned-support on the key day

GBPUSD hovers above 1.2770 resistance-turned-support on the key day

GBPUSD regains 1.2800 after snapping a six-day losing streak, making rounds to 1.2820 heading into Tuesday’s European session. In doing so, the Cable pair portrays the market’s cautious mood ahead of the all-important UK employment data and the US Consumer Price Index (CPI) figures. That said, the overbought RSI (14) line joins the pre-data anxiety to test the Pound Sterling buyers. However, a seven-month-old resistance line, now support around 1.2770, challenges the immediate downside of the quote. Even if the pair drops beneath the resistance-turned-support of 1.2770, the 50-SMA level of 1.2690 and convergence of the 100-SMA and 200-SMA, close to 1.2585, will act as the final defense of the buyers before giving control to the bears.

Meanwhile, the GBPUSD pair’s sustained run-up needs strong UK data, as well as softer US inflation to entertain the keep the Pound Sterling buyers on board. Even so, the yearly high marked on last Friday, around 1.2895, will be a tough nut to crack for the Cable buyers. In a case where the pair remains firmer past 1.2895, backed by the positive fundamentals, the quote could aim for the tops marked in July 2023 near 1.2995 and 1.3140 in that order.

To sum up, the GBPUSD pair buyers keep the reins on the day of releases of the key employment and inflation data from the UK and the US.

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