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MTrading Team • 2024-04-12

GBPUSD sellers attack 1.2540 key support ahead of UK/US data

GBPUSD sellers attack 1.2540 key support ahead of UK/US data

GBPUSD fades bounce off the yearly low, marked the previous day, following its failure to cross the 200-day Exponential Moving Average (EMA) ahead of top-tier UK/US data on Friday. Apart from the failure to cross the key EMA hurdle, the bearish MACD signals and lackluster RSI (14) line also suggest a continuation of the Cable pair’s south-run. However, a daily closing beneath an upward-sloping support line stretched from December 2023, close to 1.2540 at the latest, becomes necessary for the bears to tighten the grip. Even so, February’s low of 1.2520 and late 2023 trough surrounding the 1.2500 threshold could challenge the Pound Sterling’s further downside. It’s worth noting, however, that the quote’s weakness past 1.2500 will make it vulnerable to plunge toward mid-November 2023’s low of near 1.2375.

Alternatively, the GBPUSD pair’s recovery needs a daily closing beyond the 200-EMA level of 1.2567 to convince short-term buyers. Even so, a five-week-old descending resistance line and the monthly high will challenge the Pound Sterling’s further upside around 1.2645 and 1.2710 in that order. It’s worth noting that the pair’s upside beyond 1.2710 enables it to confront a four-month-long horizontal resistance area surrounding 1.2790-2805. Following that, the Cable buyer’s ability to renew the yearly high, currently around 1.2900, can’t be ruled out.

Overall, the GBPUSD pair is on the way to bear’s platter as a slew of monthly UK data dump and the US UoM Consumer Sentiment Index occupy Friday’s economic calendar.

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