Great Britian Pound versus Japanese Yen managed to hover above 50% fibo retracement level and high supply demand zone of ours while also leaving the daily, weekly and monthly pivots below the current market price. The exponential moving average 50 in the four hourly time frame is supporting the market price and might push the Pound higher towards exponential moving average 200 on the four hour chart i.e 1.36876. The relative strength index and MACD are pointing towards substantial but temporary gains on the daily chart, indicating that the daily resistance 1.3665 needs to be broken for the cables to drag King Dollar towards 1.3720. The kicking of the debt ceiling issue down the road and some ease in energy costs have allowed GBP/USD to recover – and it now faces critical US consumer data, UK jobs, and probably additional worries about supply chain issues.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Pound/dollar has been trading under a downtrend resistance line and suffers from downside momentum on the daily chart. After the exponential moving average 50 broke below the exponential moving average 200  on the daily chart – the "Death Cross" pattern – a month ago, the 100-day SMA is also set to pierce the 200-day SMA. That would add to the bearish sentiment. Moreover, the Relative Strength Index (RSI) is well above 30, thus far from oversold conditions. Support awaits at 1.3540, which cushioned the pair in early September. It is followed by 1.34, the 2021 trough set recently. Further down, levels that were last seen in 2020 come into play. These include 1.3310 and 1.3250.

Immediate resistance is at 1.3560, the October peak, followed by 1.3750, which capped cable in late September. Further above, 1.3840 and 1.3910 are eyed.

GBPUSD

Oct 09 2021