Technical Analysis – GBPUSD breaks a short-term uptrend line
November 4, 2022 12:25 pm
GBPUSD tumbled yesterday after the BoE’s dovish triple hike, breaking below the short-term uptrend line drawn from the low of September 26. The slide came after the pair struggled to overcome the longer-term downtrend line taken from the high of February 23, taking it below all three of the plotted exponential moving averages. All this points to a negative short-term outlook.
GBPUSD hit support near the 1.1145 level after the slide and rebounded somewhat, while our short-term oscillators are suggesting that some further recovery may be in the works before the bears take the reins again. The RSI rebounded and exited its below-30 zone, while the MACD, although below both its zero and trigger lines, is showing signs of bottoming as well.
Should the bears recharge from below the moving averages, a forthcoming slide could result in the break of the 1.1145 barrier and perhaps a test at the October 21 low at 1.1050. If there are no buyers to be found there, another dip could extend the slide towards the 1.0920 hurdle, the break of which could see scope for declines towards the low of September 29 at 1.0755.
On the upside, a move above 1.1635 may be needed for the picture to become brighter. This could confirm the break above the aforementioned downtrend line and could initially challenge the peak of September 13 at 1.1735. If the bulls are not willing to quit there, then they may climb towards the August 26 high at 1.1900.
To wrap everything up, GBPUSD fell on the BoE decision, breaking below the short-term uptrend line drawn from the low of September 26. This suggests that deeper declines may be looming.
GBPUSD tumbled yesterday after the BoE’s dovish triple hike, breaking below the short-term uptrend line drawn from the low of September 26. The slide came after the pair struggled to overcome the longer-term downtrend line taken from the high of February 23, taking it below all three of the plotted exponential moving averages. All this points to a negative short-term outlook.
GBPUSD hit support near the 1.1145 level after the slide and rebounded somewhat, while our short-term oscillators are suggesting that some further recovery may be in the works before the bears take the reins again. The RSI rebounded and exited its below-30 zone, while the MACD, although below both its zero and trigger lines, is showing signs of bottoming as well.
Should the bears recharge from below the moving averages, a forthcoming slide could result in the break of the 1.1145 barrier and perhaps a test at the October 21 low at 1.1050. If there are no buyers to be found there, another dip could extend the slide towards the 1.0920 hurdle, the break of which could see scope for declines towards the low of September 29 at 1.0755.
On the upside, a move above 1.1635 may be needed for the picture to become brighter. This could confirm the break above the aforementioned downtrend line and could initially challenge the peak of September 13 at 1.1735. If the bulls are not willing to quit there, then they may climb towards the August 26 high at 1.1900.
To wrap everything up, GBPUSD fell on the BoE decision, breaking below the short-term uptrend line drawn from the low of September 26. This suggests that deeper declines may be looming.
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