GBP/USD Climbs on Better Manufacturing Numbers but Finds Resistance at the MAs - Forex News by FX Leaders
Let's see if the 100 SMA will reverse the price back down

GBP/USD Climbs on Better Manufacturing Numbers but Finds Resistance at the MAs

Posted Sunday, April 1, 2001 by
Skerdian Meta • 1 min read

Towards the end of last week GBP/USD turned bearish as the likelihood of Theresa May passing her Brexit deal diminished. She lost the meaningful vote 286-344 in the British Parliament but she didn’t quit and is continuing her fight to get Brexit done, which has left markets where they were before the vote, quite uncertain.

GBP/USD lost around 150 pips after the vote but it closed the week above 1.30. Today the sentiment has improved in financial markets, as the rally in stocks shows. That’s probably due to the positive economic data from China which was released yesterday, especially the manufacturing PMI.

The H1 chart is overbought now

As a result, GBP/USD is nearly 100 pips higher now but it is finding resistance at moving averages on different time-frame charts. On the H1 chart, we have the 100 simple MA (green) providing resistance , while on the H4 chart the 100 smooth MA (red) is doing that job.

The H1 chart is well overbought now as stochastic shows while the H4 chart is becoming overbought. So, we might see a bearish reverse from here if the buyers fail to break above these moving averages. If they break above them, then that would open the door for 1.3250-60. Right now it is not clear which side will take the upper hand, but we’ll keep an eye on this pair in the coming sessions.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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