GBPUSD drifted back lower after the 20-day simple moving average (SMA) capped yesterday’s bounce off the 1.2615 floor for the fifth consecutive day.
The RSI has changed direction to the downside in the bearish area, reflecting strengthening selling attitude, though with the MACD stalling its decline near its red signal line, the pair might have another opportunity for a rebound.
The price is still trading above the broken bearish channel and the 1.2615 support region. If the bears snap that base, which overlaps with the 38.2% Fibonacci retracement of the 1.1800-1.3141 upleg, the pair could dive towards the 1.2470-1.2500 territory. Additional losses from there may stall somewhere between the 200-day SMA and the 61.8% Fibonacci of 1.2310. Strikingly, the channel’s lower boundary is in the neighborhood too.
On the upside, the bulls will keep an eye on the 20-day SMA at 1.2730, though to ensure a short-term success they will wait for a sustainable extension above the 50-day SMA and the broken long-term support trendline at 1.2820. If that happens, the price may ascend towards the 1.2940-1.3000 resistance territory. Breaking higher, the door will open for the 1.3141 top.
All in all, GBPUSD could not surpass a nearby resistance zone, remaining exposed to downside risks. More sellers could step in below1.2615.
GBPUSD drifted back lower after the 20-day simple moving average (SMA) capped yesterday’s bounce off the 1.2615 floor for the fifth consecutive day.
The RSI has changed direction to the downside in the bearish area, reflecting strengthening selling attitude, though with the MACD stalling its decline near its red signal line, the pair might have another opportunity for a rebound.
The price is still trading above the broken bearish channel and the 1.2615 support region. If the bears snap that base, which overlaps with the 38.2% Fibonacci retracement of the 1.1800-1.3141 upleg, the pair could dive towards the 1.2470-1.2500 territory. Additional losses from there may stall somewhere between the 200-day SMA and the 61.8% Fibonacci of 1.2310. Strikingly, the channel’s lower boundary is in the neighborhood too.
On the upside, the bulls will keep an eye on the 20-day SMA at 1.2730, though to ensure a short-term success they will wait for a sustainable extension above the 50-day SMA and the broken long-term support trendline at 1.2820. If that happens, the price may ascend towards the 1.2940-1.3000 resistance territory. Breaking higher, the door will open for the 1.3141 top.
All in all, GBPUSD could not surpass a nearby resistance zone, remaining exposed to downside risks. More sellers could step in below 1.2615.
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