GBP/USD Holds On To Gains But Is Incapable To Clear the 1.3730 Resistance Area

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GBP/USD Current price: 1.3728

• Sentiment drove major pairs in the absence of relevant macroeconomic figures.
• The number of weekly coronavirus deaths in the UK reaches its highest since March.
• GBP/USD holds on to gains but is incapable to clear the 1.3730 resistance area.

The GBP/USD pair advanced to 1.3747 but was unable to hold on to gains beyond a Fibonacci resistance level at 1.3730. The pair advanced amid a better market mood backed by diminished chances of US Federal Reserve tapering. The absence of UK data exacerbated range trading around GBP/USD, with the pair driven by the market’s sentiment.

Meanwhile, the UK reported over 30K new coronavirus contagions and 174 new deaths, with the number of deaths registered in England and Wales in the week ending 13 August at the highest level since late March. At this point, the government has not mentioned the possibility of a return to restrictions.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral-to-bullish in the near term but still needs to clear the 61.8% retracement of its March rally to be able to extend its gains. The 4-hour chart shows that the pair keeps developing above a mildly bullish 20 SMA, although it remains far below the 100 and 200 SMA, which maintain their bearish slopes, converging at around 1.3810. The Momentum indicator keeps heading north within positive levels, while the RSI indicator consolidates around 55, reflecting the absence of selling interest.

Support levels: 1.3675 1.3620 1.3560

Resistance levels: 1.3730 1.3780 1.3825

Image by PublicDomainPictures from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.