GBP/USD Price Analysis: Sluggish between 200-HMA and immediate support line, UK data eyed

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  • GBP/USD struggles to find traction inside a 15-pip trading range after declining the most in 12 days.
  • MACD teases bulls, UK Retail Sales for March and preliminary Markit PMIs for April also suggest the pair’s recovery moves.
  • Confluence of 100-HMA and descending trend line from Tuesday becomes the key hurdle.

GBP/USD consolidates the heaviest drop in over weeks while picking up bids to 1.3841 during Friday’s Asian session.

Even so, the quote remains inside a choppy 15-pip trading range while defending an upward sloping trend line from April 12, not to forget stating the sustained weakness below 200-HMA, ahead of the key UK Retail Sales and Markit PMI data.

It should, however, be noted that the upbeat forecast concerning the scheduled British statistics and recovery in the MACD signals seem to back the GBP/USD bulls.

As a result, an upside break of 200-HMA level of 1.3846 can escalate the recovery moves toward Wednesday’s low near 1.3885. Though, a convergence of 100-HMA and four-day-old resistance line around 1.3920-25 will be a tough nut to crack for buyers.

On the flip side, a clear break below the stated support line, around 1.3833 by the press time, will not hesitate to direct the quote towards 61.8% Fibonacci retracement of April 12-20 upside, close to the 1.3800 threshold.

Should GBP/USD sellers dominate past-1.3800, a horizontal line from April 13 around 1.3715 will be important to watch.

GBP/USD hourly chart

Trend: Further upside expected

 

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