- GBP / USD reverses from highest levels since December 31, 2019.
- The short-term ascending channel, 200-HMA, holds buyers’ hopes.
- A new buy expects a clear breakout of 1.3300.
- BOE Governor Andrew Bailey will speak at the Jackson Hole Symposium at around 1:05 p.m. GMT.
GBP / USD drops to 1.3196 midway through the initial Asian trading session on Friday. Despite refreshing the several-month high, Cable failed to cross the late 2019 high below 1.3300 the day before. As a result, sellers remain optimistic. However, the key BOE government rhetoric is ahead and makes traders cautious.
As a result, traders in the pair await the event while observing a three day old ascending channel and trading supported above 200-HMA for immediate direction.
With RSI conditions favoring the bullish channel, another attempt by the pair to erase a downtrend line from August 19, to 1.3230 now, cannot be ruled out. However, the resistance of said channel around 1.3265, followed by the 1.300 threshold, will challenge the bulls thereafter.
On the other hand, the breakout of channel support and 200-HMA, near 1.3175 and 1.3155 respectively, will be necessary for the pair’s further decline to the weekly low near 1.3050. and the psychological magnet of 1.3000.
GBP / USD hourly chart
Trend: on the side