GBP/USD Bearish biased spotted from the pair

Following the previous report on GBP/USD, the pair failed to reach the higher levels of the falling wedge, with pressure near the 1.3000 handle now push the pair trading lower back into previous channel zone. In terms of the EMA, bearish bias can be seen with the 18EMA crossing below the 50EMA, signaling further bearish momentum for the pair. 

In terms of MACD, bearish momentum persist, preventing the formation of golden cross while providing solid confirmation for further downward pressure along the falling wedge. As the pair now trading back into previous channel, expectations of further price action would be placed between the 1.3000 handle and 1.2800 handle by the market, with further breakout confirmation required before being able to determine a longer-term trend for the pair.

From the fundamental point of view, last week’s jobs data from the UK failed to provide the support for the currency; adding on with the ridiculously strong rally from the US dollar further pressured the currency pair. Market is now in risk aversion mode, as investors pulling out their investment from riskier assets such as the pound, euro and even stock market, to enter into the now safe-haven gold and dollar market. 

In the short run, investors will focus on the PMI surveys from UK to gauge the country’s economic performance as it enters their transition period. Impact of the data may be significant but limited. As for the long run, market is still uncertain towards the UK-EU trade agreement, where no news or updates currently available as more focus are placed on the possible impact of the epidemic Coronavirus (Covid-19).