GBPUSD has been in a prolonged uptrend since October 2022, storming to a fresh 15-month high of 1.3141 on July 14. Since then, the pair has been experiencing a downside correction, which has reached a crucial territory as the price is currently challenging the upward sloping trendline that connectsthe higher lowsfromOctober 2022to date.
The short-term oscillators suggest that bearish forces are intensifying. Specifically, the MACD is negatively closing the gap with the 0 mark, while the RSI is ticking downwards beneath its 50-neutral threshold.
Should bearish pressures persist and the price close below the crucial trendline, the June support of 1.2590 could act as the first line of defense. Sliding beneath that floor, the pair might descend towards the 1.2445 resistance, which could serve as support in the future. Further declines could then cease at the May bottom of 1.2307 that overlaps with the 200-day simple moving average (SMA).
On the flipside, should the latest correction prove to be short-lived, the pair might initially test the recent resistance of 1.2847. Conquering this barricade, the bulls could propel the price higher towards the 1.3000 psychological mark. A violation of that zone could pave the way for the 15-month peak of 1.3141.
In brief, it seems that GBPUSD’s pullback is gaining momentum ahead of the Bank of England interest rate decision tomorrow. Could the BoE deliver a hawkish surprise and shrug off the latest weakness in the pound?
GBPUSD has been in a prolonged uptrend since October 2022, storming to a fresh 15-month high of 1.3141 on July 14. Since then, the pair has been experiencing a downside correction, which has reached a crucial territory as the price is currently challenging the upward sloping trendline that connects the higher lows from October 2022 to date.
The short-term oscillators suggest that bearish forces are intensifying. Specifically, the MACD is negatively closing the gap with the 0 mark, while the RSI is ticking downwards beneath its 50-neutral threshold.
Should bearish pressures persist and the price close below the crucial trendline, the June support of 1.2590 could act as the first line of defense. Sliding beneath that floor, the pair might descend towards the 1.2445 resistance, which could serve as support in the future. Further declines could then cease at the May bottom of 1.2307 that overlaps with the 200-day simple moving average (SMA).
On the flipside, should the latest correction prove to be short-lived, the pair might initially test the recent resistance of 1.2847. Conquering this barricade, the bulls could propel the price higher towards the 1.3000 psychological mark. A violation of that zone could pave the way for the 15-month peak of 1.3141.
In brief, it seems that GBPUSD’s pullback is gaining momentum ahead of the Bank of England interest rate decision tomorrow. Could the BoE deliver a hawkish surprise and shrug off the latest weakness in the pound?
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