Technical Analysis – GBPUSD eases to 1.1100; tests 20-day SMA
October 21, 2022 11:25 am
GBPUSD drifted lower to test the 1.1100 round number and the 20-day simple moving average (SMA) early on Friday. The RSI indicator is losing momentum below its 50 neutral mark, while the MACD is strengthening its bearish structure in the negative region as well.
Should weakness extend below the 1.1100 mark, support to downside movements could be initially detected near the 1.0910 barrier. Clearing that zone, the price could next stop around 1.0535 before reaching the record low of 1.0325.
Alternatively, the pair will need a break above the 50-day SMA at 1.1415 to meet a key barrier slightly below the 1.1500 psychological level. The long-term descending trend line currently at 1.1650 could act as resistance too before a new battle starts between 1.1750 and 1.1890.
In the long-term picture, the sentiment is still bearish and a jump above the downtrend line will probably not be enough to change the outlook to positive. A rally above the 200-day SMA could raise optimism for a brighter outlook.
GBPUSD drifted lower to test the 1.1100 round number and the 20-day simple moving average (SMA) early on Friday. The RSI indicator is losing momentum below its 50 neutral mark, while the MACD is strengthening its bearish structure in the negative region as well.
Should weakness extend below the 1.1100 mark, support to downside movements could be initially detected near the 1.0910 barrier. Clearing that zone, the price could next stop around 1.0535 before reaching the record low of 1.0325.
Alternatively, the pair will need a break above the 50-day SMA at 1.1415 to meet a key barrier slightly below the 1.1500 psychological level. The long-term descending trend line currently at 1.1650 could act as resistance too before a new battle starts between 1.1750 and 1.1890.
In the long-term picture, the sentiment is still bearish and a jump above the downtrend line will probably not be enough to change the outlook to positive. A rally above the 200-day SMA could raise optimism for a brighter outlook.
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