- GBP/USD stays pressured after reversing from one-month excessive.
- Convergence of 50-DMA, 23.6% Fibonacci retracement limits speedy draw back.
- Bullish MACD alerts, upbeat RSI (14) retains consumers hopeful.
- UK Chancellor Hunt will ship Budget speech in Parliament at 12:30 GMT.
GBP/USD bears battle to maintain the reins, after coming into the ring the day before today, because the quote stays depressed round 1.2160 throughout early Wednesday. In doing so, the Cable pair grinds close to the short-term key assist confluence as merchants await the UK Finance Minister (Chancellor) Jeremy Hunt’s annual price range speech.
Also learn: UK Chancellor Hunt, hemmed in by debt, set to deal with progress in British price range
Apart from the convergence of the 50-DMA and 23.6% Fibonacci retracement degree of the GBP/USD pair’s upside from November 2022 to February 2023, round 1.2135, the bullish MACD alerts and upbeat RSI (14), not overbought, additionally favor the Cable pair consumers.
Even if the quote breaks the 1.2135 assist confluence, the resistance-turned-support line from mid-February, round 1.2005 on the newest, provides to the draw back filters.
It’s price noting that the GBP/USD bears want validation from the 50% Fibonacci retracement degree surrounding 1.1800 to retake management. That mentioned, lows marked throughout January and within the final week, respectively close to 1.1840 and 1.1805, act as further helps to look at throughout the quote’s additional draw back.
On the flip facet, February’s prime surrounding 1.2270 precedes the 1.2300 and 1.2350 spherical figures to check the GBP/USD bulls earlier than directing them to the yearly prime, marked in February round 1.2450.
Overall, GBP/USD stays on the bull’s radar even when the pair snapped a four-day uptrend, in addition to reversed from a one-month excessive, the day before today.
GBP/USD: Daily chart
Trend: Upside anticipated