GBP/USD might rise to 1.5294 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that fresh demand for GBP/USD might be anticipated on a hourly close above 1.5250, which could lead the pair higher to test 1.5294 levels.

Key Quotes

“The GBP/USD pair largely tracked the movements in the shared currency on Thursday, due to which it ended weak at 1.5245. The pair had slumped to a low of 1.5213 before recovering to finish higher above the 50-DMA located at 1.5240.”

“With the ECB event out of the way, the correlation between GBP/USD and EUR/USD could weaken.”

“On the daily chart, the pair is trading at the 50-DMA located at 1.5240. However, we could see the pair dip to 1.52-1.5210 levels ahead of the NFP report as the pair is struggling to rise above 1.5250.”

“The hourly RSI too, is bearish indicating more weakness to come.”

“A fresh demand for Pounds could be anticipated in the case of an hourly close above 1.5250 (50% retracement of 1.4949-1.5550). In such a case the pair could rise to the 5-DMA located at 1.5294.”

“Moreover, a weak US NFP report later today could see the pair rise to 1.5294-1.5320 levels.”