GBP/USD PRICE ANALYSIS: 21-DMA AT 1.3080 REMAINS A TOUGH NUT TO CRACK FOR BULLS
- GBP/USD’s recovery fizzles as the US dollar regains ground across the board.
- GBP bulls need acceptance above 21-DMA to reverse the downtrend.
- Speeches by BOE’s Bailey and Fed’s Powell hold the key for cable traders.
GBP/USD is trading in the red around 1.3050 after running into strong offers once again near 1.3070.
The US dollar rebound in tandem with the Treasury yields could be attributed as the main reason behind cable’s pullback from higher levels.
All eyes now remain on the speeches by Fed Chair Jerome Powell and his British counterpart Andrew Bailey, which could likely underscore the Fed-BOE monetary policy divergence.
Looking at GBP/USD’s daily chart, sellers are likely to retain control so long as the price fails to find acceptance above the 21-Daily Moving Average (DMA) at 1.3080.
The 14-day Relative Strength Index (RSI) points south below the central line, justifying the renewed downside in the spot.
If the selling pressure intensifies, cable could drop further to test the 1.3000 level, below which this week’s low of 1.2980 could be retested.
GBP/USD: DAILY CHART
Only a daily closing above the 21-DMA could reverse the ongoing bearish momentum, initiating a meaningful recovery towards 1.3100.
The April 14 highs at 1.3147 will lure GBP buyers on the road to recovery.