GBPUSD is trading sideways at 1.2160 due to USD weakness.
The GBPUSD is trading below the 50- and 100-hour EMAs. While the RSI is above 50, indicating a bullish trend.The primary resistance level will be found between 1.2200 and 1.2210. While the initial support level is around 1.2110.
During the Asian session on Thursday, the GBPUSD pair remained stable above the mid-1.2100s. In the lack of top-tier economic data from the UK docket, the major pair is at the mercy of the price dynamics of the US Dollar (USD). GBPUSD is presently trading around 1.2160, up 0.21% on the day.
Nonetheless, the pair’s recovery is aided by a lower US Dollar (USD) on the weakening Data about the US labor market. Automatic Data Processing (ADP) said on Thursday that private payrolls in the United States increased by 89,000 in September. Up from 180,000 the previous month, falling short of the market’s forecast of 153,000. This statistic was the lowest since January 20, 2021.
GBPUSD Technical Outlook
GBPUSD is trading below the 50- and 100-hour Exponential Moving Averages (EMAs) with a negative slope on the four-hour chart. Suggesting that additional fall is likely. Furthermore, the Relative Strength Index (RSI) is above 50. Indicating that buyers are likely to regain control shortly.
The important resistance level for the GBPUSD will appear at the upper border of the Bollinger Band and a psychological round figure at 1.2200-1.2210. The extra upward filter to keep an eye on is approaching the 100-hour mark. EMA at 1.2257. The pair’s next resistance level is predicted around 1.2270 (a high of September 29). Further north, a September high of 1.2324 will be the next halt.
The GBPUSD initial support level, on the other side, is at 1.2110 (a low of September 27). The next point of dispute will appear at the low of October 3 on the way to the bottom limit of the Bollinger Band at 1.2028. Any serious follow-through selling below will result in a slide below 1.1965 (a February 16 low).
