GBP/USD – stuck at 5-DMA

Despite being on front foot in Asia, the GBP/USD pair is having a tough time taking out 5-DMA hurdle of 1.3027 levels.

Rejected at 1.3094

A move higher on Wednesday ran out of steam at 1.3094 following which the pair fell to a low of 1.2990 before ending the day at 1.3006. The exchange rate ticked higher in Asia to 1.3028 levels. Bid tone around USD recovered in the US session, while sharp losses in the GBP/NZD cross kept Cable under pressure.

Ahead in the day, the spot remains at the mercy of the overall demand for the US dollars. Later in the US session, the initial jobless claims could influence treasury yields and US dollar.

GBP/USD Technical Levels

Break below Asian session low of 1.3004 could yield a re-test of weekly low of 1.2956. Further losses could run into support at psychological level of 1.29. On the other hand, violation at 1.3027 (5-DMA) would expose 1.3094 (previous day’s low). A cut above would open doors for 1.3131 (10-DMA).