Gbpusd Trades With Modest Gains

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Gbpusd Trades With Modest Gains

Gbp/Usd Trades Under 1.3000 With Modest Gains

GBP/USD is trading just below the 1.3000 handle on Friday with modest gains. The nearest support for the pair is seen around 1.2950, but the chances of hitting that are low due to the subdued USD.

Now, the traders are eyeing the development in the USA to develop a fresh perspective on the GBP/USD pair. On the H4 chart, the RSI indicator continues to print above 50, which is a good sign.

Gbp/Usd Faces Resistance At 100 Sma

However, the GBP/USD has yet to cross the 100 SMA on the D1 chart, which is a sign of buyers' hesitation. The 100 SMA is seen at around 1.2980, which makes it a solid dynamic resistance.

On the way down, 1.2940 is also a solid static level, followed by the next one at 1.2900. But if GBP/USD can manage to close above 1.2980, it would mean a move towards 1.3000 is on the cards.

Beyond 1.3000 lies the next resistance at 1.3040, which is also a key static level for the GBP/USD pair.

quick look at the recent price action shows that GBP/USD initially crossed the 1.300 handle on Monday. At that time, GBP/USD had made a bullish gap but ended up giving some of these gains later that day.

Now, the GBP/USD is trading in the green on Tuesday as the investors are waiting for news from the USA. The overall sentiment shows that the US dollar is under pressure due to uncertainty in the US election.

However, a conclusion of the US election will allow the US Dollar to gain an edge against the GBP once again. Even if that is temporary, it is sure to happen due to the market cycle.

Later this week, October's ISM Services PMI is due on Tuesday, but it will likely be a non-event for the investors. It seems that the biggest concern for the investors is now the US elections as opposed to US economic releases.

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