GBPUSD extended the rebound to the 1.2500 handle where the 20-DMA capped gains and triggered profit-taking
The USD sell-off seems to have paused amid rising US Treasury bond yields. The USD index bounced back into positive territory on Wednesday following three days of losses in a row. Still, the buck stays below the 104.00 mark, struggling around 103.60 during the European hours ahead of the US construction data due later today. As such, EURUSD encountered the descending 20-DMA to settle just above 1.0500. Should the euro shrug off the pressure anytime soon, the moving average could give up, but the pair will need some extra driver to confirm the bounce. On the four-hour charts, the technical picture looks neutral as the common currency is stuck between the key moving averages while the RSI turned directionless around the 57 figure. On the other hand, bearish risks look limited while above the 1.0500 level. In turn, the downside pressure would ease further once the euro regains 1.0600 on a daily closing basis.
GBPUSD extended the rebound to the 1.2500 handle where the 20-DMA capped gains and triggered profit-taking after three days of gains. The pair retreated back to the 1.2400 mark during the European trading hours, suggesting the cable could struggle to stage a more robust bounce in the near term, especially as the safe-haven dollar demand has reemerged. On the hourly timeframes, GBPUSD is making fresh bullish attempts, with the RSI turning positive in neutral territory, which implies that the bearish potential is limited as well for the time being. In a wider picture, the pair stays on the defensive while below the 100-week SMA, today at 1.3430. As the bearish trend persists, the recent long-term lows below 1.2200 stay in the market focus for the time being. Should the selling pressure surrounding the dollar reemerge in the near term, the pair may retarget the 20-DMA, but the path of least resistance remains to the downside so far.
USDJPY keeps flirting with the 20-DMA, struggling to regain the upside momentum on Wednesday despite a bounce in the USD index. The pair turned slightly negative in recent trading, holding just above 129.00 for the time being. The prices derived support from the 128.70 zone earlier this week. Even as the buck retreated from multi-year peaks seen above 131.00, the overall outlook for the pair remains constructive as the pair refrains from a deeper downside correction after a bounce from local lows registered in the 127.50 region last week. On the four-hour timeframes, the technical picture looks neutral, as the prices are flirting with the 20-SMA while the RSI is directionless around 46. On the upside, a decisive break above 129.60 would pave the way towards the 130.00 mark that represents the immediate significant barrier for USD bulls at this stage.
The bitcoin price has steadied these days after a major sell-off that sent the coin to late-2020 lows earlier this month. After finding a bottom just above the $25,000 figure, the BTCUSD pair bounced to briefly exceed the $31,000 handle earlier this week. However, the largest cryptocurrency by market capitalization failed to extend recovery and has settled below the $30,000 level eventually. On Wednesday, the digital currency trades under some selling pressure, struggling to regain $30,000 as investors stay cautious after the recent plunge in the crypto space. BTC’s bullish potential looks limited at this stage, especially as the prices keep trading below the descending 20-DMA, today at $33,600. Of note, bitcoin failed to regain this moving average earlier this month as well as in April. On the other hand, BTCUSD is now holding above $28,000, with the technical picture looking neutral on shorter-term timeframes.