- GBP/USD remains on the sidelines after bouncing off the 21-DMA support.
- The 10-DMA limits the immediate upside amid a receding bullish bias in MACD signals.
- As a descending trendline from February, 50-DMA stands tall to challenge further advances.
GBP/USD depicts the typical lull in pre-NFP trading as buyers and sellers jostle around 1.2580 in Friday’s Asian session.
The Cable pair reversed from a fortnight low the previous day while posting the biggest daily jump in two weeks. The rally moves got support from the 21-DMA, as well as bullish MACD signals.
However, recently smaller green bars on the MACD, the difference between the MACD line and the signal line, join the 10-DMA level around 1.2580 to challenge the GBP/USD pair’s immediate upside.
Even if the quote manages to clear the immediate 1.2580 hurdle, the latest high around 1.2670 precedes a convergence of the February 18th 50-DMA descending trendline near 1.2700-15, to challenge buyers of the pair.
Meanwhile, the pair’s decline past the 21-DMA support of 1.2460 will need to be validated by the 1.2410-2400 region, comprising levels marked since April 28th, to call back GBP/USD bears.
Thereafter, the area around the midpoint of 1.2200 can act as a last defense for the bulls before steering prices down to the May low at 1.2155.
GBP/USD: daily chart
Trend: expected decline