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MTrading Team • 2023-01-17

GBPUSD fades bounce off 100-day EMA ahead of key UK data

GBPUSD fades bounce off 100-day EMA ahead of key UK data

GBPUSD bulls are struggling to keep the reins as traders await crucial British economics scheduled during the week, starting with the UK jobs report. That being said, a retreat in the RSI and sluggish MACD joined the recent softness in prices to signal the Cable pair’s pullback towards the 1.2000 psychological magnet, a break of which could quickly drag the quote to the 100-day EMA surrounding 1.1930. In a case where the pair remains bearish past 1.1930, tops marked during September and October 2022, respectively around 1.1735 and 1.1645, could act as the last defense of the buyers.

Alternatively, GBPUSD buyers need to cross a downward-sloping resistance line from late March 2022, close to 1.2350, to convince markets. Following that, the late 2022 peak surrounding 1.2445 might probe the bulls before directing them to the 78.6% Fibonacci retracement level of the pair’s March-September downturn, around 1.2665. Should the Cable pair remains firmer past 1.2665, multiple lows marked during early April near 1.2975 and the 1.3000 round figure might test the upside moves ahead of highlighting March 2022 peak near 1.3200.

Overall, GBPUSD is at an interesting place in the chart where bulls and bears are mostly equal, which in turn highlights this week’s data for clear directions.

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