Technical Analysis – GBPUSD has bullish potential despite muted trading
April 24, 2023 3:27 pm
GBPUSD cannot find enough buyers to reclaim the December-January ceiling of 1.2445 following the pullback from April’s border of 1.2520.
The pair has been squeezed over the past couple of days, opening and closing near the 1.2445 barrier during the previous muted sessions. Yet, the ascending trendline drawn from the March lows, which seems to be part of a bullish channel, could act as a buffer to downside risks along with the 20-day simple moving average (SMA) around 1.2420.
Should the bulls pick up steam above 1.2445, breaching the 1.2520 bar too, the rally may continue towards the channel’s upper boundary seen near 1.2775. The 1.2885-1.3000 region, which includes the 61.8% Fibonacci level of the 2021-2022 downtrend, could be another challenge on the upside, likely preventing an extension up to 1.3150. This is where the support-turned-resistance trendline from September’s lows is currently placed.
Alternatively, some extra consolidation or a downside correction cannot be ruled out as the weakness in the RSI and the MACD, which have posted news lows recently, is dampening hopes for a quick upturn in the coming sessions.
Sellers could take charge if the price crosses below the channel and its 20-day SMA near 1.2400. If that proves to be the case, the price may revisit the 50% Fibonacci mark of 1.2285, while a steeper decline below the 50-day SMA at 1.2200 could stabilize somewhere between 1.2045 and the broken descending trendline from January seen near 1.1975.
Summing up, GBPUSD might defend its bullish structure in the short term, likely attracting new buyers above 1.2520.
GBPUSD cannot find enough buyers to reclaim the December-January ceiling of 1.2445 following the pullback from April’s border of 1.2520.
The pair has been squeezed over the past couple of days, opening and closing near the 1.2445 barrier during the previous muted sessions. Yet, the ascending trendline drawn from the March lows, which seems to be part of a bullish channel, could act as a buffer to downside risks along with the 20-day simple moving average (SMA) around 1.2420.
Should the bulls pick up steam above 1.2445, breaching the 1.2520 bar too, the rally may continue towards the channel’s upper boundary seen near 1.2775. The 1.2885-1.3000 region, which includes the 61.8% Fibonacci level of the 2021-2022 downtrend, could be another challenge on the upside, likely preventing an extension up to 1.3150. This is where the support-turned-resistance trendline from September’s lows is currently placed.
Alternatively, some extra consolidation or a downside correction cannot be ruled out as the weakness in the RSI and the MACD, which have posted news lows recently, is dampening hopes for a quick upturn in the coming sessions.
Sellers could take charge if the price crosses below the channel and its 20-day SMA near 1.2400. If that proves to be the case, the price may revisit the 50% Fibonacci mark of 1.2285, while a steeper decline below the 50-day SMA at 1.2200 could stabilize somewhere between 1.2045 and the broken descending trendline from January seen near 1.1975.
Summing up, GBPUSD might defend its bullish structure in the short term, likely attracting new buyers above 1.2520.
Related Posts: