GBP/USD: Rejection at 1.1500 recalls sellers ahead of Truss, US data

GBP/USD is correcting from three-week highs of 1.1495, snapping a six-day uptrend, as the US dollar jumps back on the bids amid broad risk aversion. E  |  05/10/2022 09:59
  • GBP/USD is off the lows but remains vulnerable near 1.1400.
  • The US dollar recovery strengthens amid broad risk aversion.
  • Cable bears eye 21 DMA once again after rejection at 1.1500.

GBP/USD is correcting from three-week highs of 1.1495, snapping a six-day uptrend, as the US dollar jumps back on the bids amid broad risk aversion.

Escalating geopolitical tensions between Russia and Europe over the Ukraine war keep investors on the edge. The European Union (EU) backs sanctions against Russia, including the oil price cap. The flight to safety team persists, underpinning the dollar’s safe-haven appeal.

Investors refrain from placing any directional bets on the pound ahead of UK PM Liz Truss’ address to the Tory party. In the meantime, cable finds some comfort from the upward revision to the UK final S&P Global Services PMI, which came in at 50.0 in September.

Attention now turns towards the US ADP employment and ISM Services PMI due later in the NA session for fresh trading opportunities.

As observed on a daily chart, GBP/USD eyes the horizontal 21-Daily Moving Average (DMA) at 1.1297 on its retreat from higher levels.

The next downside target is seen at 1.1250 the psychological level.

The 14-day Relative Strength Index (RSI), however, is holding above the midline while keeping the bullish bias intact.

Alternatively, the descending trendline resistance at 1.1662 remains on buyers’ radars once the 1.1500 level gets cleared.

GBP/USD: Daily chart

GBP/USD: Additional technical levels

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com