STERLING REJECTED FROM 50 DAY MOVING AVERAGE
Broad-based U.S dollar weakness provoked a bullish move above the 1.2920 level, however, sterling has been strongly rejected from 1.2979 level, which represents the GBPUSD pairs daily time frame, 50 period moving average.
At present, the pair is trading around the 1.2950 level, as traders await the start of the U.S trading session, with North Korea and a key speech Federal Reserve voting member Charles Evans in focus.
GBPUSD is strongly bullish on an intraday basis, with the pair now trading back above both 100-day and 200-day moving averages.
Technical resistance is found at 1.2980, while the1.3000 level offers strong psychological resistance. Above the 1.3000 level, the 50 percent Fibonacci retracement of the 1.2773 price low, to the 1.3268 high, is found at 1.3020.
To the downside, the M5 time frame, 200 period moving average is found at 1.2940. The 100-day moving average offers solid intraday support, at 1.2920, with the 1.2890 level acting as critical weekly support.