GBP/USD Back at This Moving Average Before the UK Construction Numbers
Skerdian Meta • 1 min read
The USD is making progress this morning, following yet another beating yesterday. EUR/USD broke above 1.25, while GBP/USD headed towards 1.43.
This morning, however, the US Dollar is fighting back- that being said, it doesn’t seem strong enough to make a proper reversal. Nonetheless, USD buyers have taken GBP/USD to 1.4220s now, where we can find the 50 SMA (yellow).
The 50 SMA is providing support again
This moving average has been providing support during the uptrend this week in GBP/USD. It had also helped push this pair higher at the beginning of this month, meaning that it holds power and impact.
We are now at this moving average once again. The H1 chart setup is looking good for buyers now, as yhe trend is up, and the price has completed a retrace lower with the stochastic indicator oversold, and the 50 SMA providing support.
The UK construction output report will be published in a few minutes. This is not the most influential report, especially now that politics are driving the Forex market around. It may, however, have a meaningful impact if the deviation is big enough. This sector has become weakened over the last few months. Several months ago it slipped into contraction, so the market is worried that it may get there again.
Not particularly negative- we might as well open a buy Forex signal around here.