Created
: 2024.05.02
2024.05.02 23:58
The Pound Sterling tumbled in early trading during the North American session, dropping below the 1.2500 figure amid renewed US Dollar strength. Data from the United States showed that the Balance of Trade deficit tightened while the labor market remained tight, as revealed by the Initial Jobless Claims report. The GBP/USD trades at 1.2488, down 0.30%.
From a technical standpoint, the GBP/USD is showing a neutral to downward bias. This is a result of buyers failing to breach the significant resistance at the 200-day moving average (DMA) at 1.2550. This failure has further intensified the major's drop below the 1.2500 figure, potentially paving the way for a test of the latest cycle low seen at 1.2299, the April 22 low.
Momentum points to a continuation of the downtrend, as the Relative Strength Index (RSI) turned bearish on April 30. As of writing, it aims downward, meaning sellers remain in charge.
On the other hand, if buyers reclaim 1.2500, they must reclaim the 200-DMA ahead of testing the April 29 high at 1.2569. Once cleared, the next stop would be the 1.2600 mark, followed by the 50-DMA at 1.2613. Further gains are seen above the 100-DMA at 1.2644
Created
: 2024.05.02
Last updated
: 2024.05.02
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