TenkoFX - Analytics


    425.75 7.25/10
    68% of positive reviews

    GBP/USD breaks though 50-DMA, now eyeing 100-DMA important support Haresh Menghani

    As the European session got underway, a fresh bout of selling pressure seems to have emerged in the GBP/USD pair, dragging it to session low.Worries over a possible ‘Brexit’ and its implication on the UK economy continue to drive investors away from the British Pound with the GBP/USD major now dropped below 50-day SMA support around 1.4450 region, which was held before the European opening and on Thursday as well.With no major economic data slated for release on Friday, focus would remain on the only important release from the US, Prelim UoM Consumer Sentiment for the month of June. In the meantime, cable is likely to take cues from the risk sentiment surrounding equity markets and yield movement in UK/European bonds.Technical levels to watchFrom current levels, 1.4400 handle seems to extend immediate support, below which 100-day SMA strong support near 1.4350 region is exposed. A convincing break below 100-day SMA support would confirm a near-term bearish double-top chart pattern, thus increasing the pair's vulnerability to continue drifting lower in the near-term.On the flip side, 50-day SMA support break point near 1.4330 region now seems to act as immediate resistance. This is followed by resistance near 1.4500 handle, above which the pair is likely to extend the recovery towards 1.4555-60 horizontal resistance.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree