GBP/USD extends weekly gains beyond 1.2750

Bonds June 07, 2019 (0)

The GBP/USD pair trades above 1.2750 as the greenback can’t recover from a dismal NFP report which fueled odds for a rate cut. UK PM has officially resigned as party leader, political turmoil ahead.

GBP/USD has made a third attempt to break above 1.2750 which looks like a triple top at first sight. However, a closer look shows that each peak is lower than the previous one. These lower highs are a bearish sign. 

Other indicators are relatively positive – GBP/USD is trading above the 50 and 100 Simple Moving Average, momentum is to the upside, and the Relative Strength Index is rising. 

Above 1.2750, cable faces resistance at 1.2815, which was a swing high in mid-May, and 1.2870 that was the low point in April.

Thursday’s low at 1.2670 is the initial support line. It is followed by 1.2640 that was a swing low in early June, then by 1.2620 and finally, by 1.2558 which was seen in late May and is the lowest since January.