GBP/USD Price Analysis: Finds offers near trendline and 100-MA confluence at 1.1950
The GBP/USD pair is displaying a lackluster performance in the early Tokyo session as the traded range is peanuts against usual. After a volatile Wednesday, the cable looks to turn sidesways to ease-off standard deviation first and then will look for a decisive move. On a broader note, after surrendering the psychological support of 1.2000, odds are favoring for a downside bias. Therefore, investors should take more precautions on taking longs.
The greenback bulls have comfortably defended the confluence of the downward sloping trendline plotted from June 27 high at 1.2324 and the 100-period Simple Moving Average (SMA) near 1.1950.
GBP/USD bears keep reins below 1.1900 amid recession fears, UK’s political crisis
GBP/USD fades bounce off intraday low while also reversing the previous day’s rebound as sellers dominate around 1.1865 during early Thursday morning in Europe. The Cable pair cheered upbeat UK data the previous day but lost the battle against the 40-year high US inflation and hawkish Fedspeak. Also weighing the pair is the political crisis in the UK after Boris Johnson resigned.
The higher-than-expected monthly prints of the British Gross Domestic Product (GDP), Industrial Production and Manufacturing Production for May favored the GBP/USD buyers the previous day. That said, softness in the trade deficit for the said month also helped the Cable buyers to mark a surprise entry.