Technical Analysis – GBPUSD flatlines near December’s high
January 27, 2023 1:25 pm
GBPUSD entered a tight range following the pullback from December’s high of 1.2445 on Monday.
The weakening momentum in the RSI and the MACD is currently reflecting some hesitancy among buyers, though with the 1.2320 support area remaining intact, the bulls could make another attempt to climb the 1.2445 wall.
If they succeed this time, the price may advance towards May’s resistance zone of 1.2665, while the ascending line drawn from record lows could also attract special attention at 1.2750. Should the 1.2800 psychological mark give way too, the next target will be the 1.3000 level.
Note that the 50- and 200-day simple moving averages (SMAs) have completed a golden cross, adding more credence to the positive trend.
A downside correction may not raise concerns unless the price crosses below the important area of 1.2175-1.2100, where the shorter-term SMAs and two key trendlines are placed. If the price dives below that floor, selling pressures may intensify towards the 200-day SMA, which is flattening around the 23.6% Fibonacci retracement level of the 1.0324-1.2445 upleg at 1.1945. Then, a decisive close below 1.1900 may produce another sharp downfall towards the 1.1740 mark and the 38.2% Fibonacci mark of 1.1635.
In brief, despite the ongoing consolidation phase in the very short-term picture, GBPUSD has not lost buyers’ attention yet, making a break above 1.2445 likely
GBPUSD entered a tight range following the pullback from December’s high of 1.2445 on Monday.
The weakening momentum in the RSI and the MACD is currently reflecting some hesitancy among buyers, though with the 1.2320 support area remaining intact, the bulls could make another attempt to climb the 1.2445 wall.
If they succeed this time, the price may advance towards May’s resistance zone of 1.2665, while the ascending line drawn from record lows could also attract special attention at 1.2750. Should the 1.2800 psychological mark give way too, the next target will be the 1.3000 level.
Note that the 50- and 200-day simple moving averages (SMAs) have completed a golden cross, adding more credence to the positive trend.
A downside correction may not raise concerns unless the price crosses below the important area of 1.2175-1.2100, where the shorter-term SMAs and two key trendlines are placed. If the price dives below that floor, selling pressures may intensify towards the 200-day SMA, which is flattening around the 23.6% Fibonacci retracement level of the 1.0324-1.2445 upleg at 1.1945. Then, a decisive close below 1.1900 may produce another sharp downfall towards the 1.1740 mark and the 38.2% Fibonacci mark of 1.1635.
In brief, despite the ongoing consolidation phase in the very short-term picture, GBPUSD has not lost buyers’ attention yet, making a break above 1.2445 likely
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