The Cable is tending for losses below 1.3750, as the sellers take a break before resuming the downtrend, helped by a broad US dollar comeback and the Treasury yields. As observed on the daily chart, the cable remains poised for deeper losses following the two-day heavy sell-off from three-week highs of 1.3918.
Today at 11:30 traders are waiting for the UKs Construction PMI which is forecasted to increase from the previous reading.
Currently, the major trades better bid around 1.3840, with eyes on the critical upward-sloping 100-daily moving average (DMA) support at 1.3682 heading into the US Jobless Claims data and Fed Chair Powell’s speech due later on Thursday.
Any recovery attempts in the major are likely to remain shallow and could likely face a strong hurdle at the bearish 21-DMA at 1.3831. If the bulls succeed in taking out that level, the next upside target is aligned at the ascending 50-DMA at 1.3853.
However, given that the Relative Strength Index (RSI) continues to hold below the central line, the downside appears more probable for GBPUSD.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.