Technical Analysis – GBPUSD holds near 1.2400 but outlook remains bullish
April 21, 2023 11:56 am
GBPUSD’s break to the upside by the bulls was short-lived as they failed to surpass the ten-month high of 1.2545 in the previous session. The MACD oscillator is moving lower beneath its trigger line in the bullish region, while the RSI is stepping down above the neutral threshold of 50.
If the market manages to pick up speed, the ten-month high of 1.2545 could offer nearby resistance ahead of the 1.2665 obstacle, taken from the peak in May 2022. Above that, the 200-weekly simple moving average (SMA) at 1.2854 could act as a strong barrier for traders.
Should prices decline, immediate support could be found around 1.2270, an area which has provided both resistance and support in the previous months. Then in case of a leg below that level, the pair could meet the 50-day SMA at 1.2205 before resting near the uptrend line at 1.2120. Even lower, the focus could shift to the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2545 at 1.2020.
In the long term, the outlook remains positive since prices are holding above all the moving average lines and the bullish cross between the 20- and the 50-day SMA remains in place.
GBPUSD’s break to the upside by the bulls was short-lived as they failed to surpass the ten-month high of 1.2545 in the previous session. The MACD oscillator is moving lower beneath its trigger line in the bullish region, while the RSI is stepping down above the neutral threshold of 50.
If the market manages to pick up speed, the ten-month high of 1.2545 could offer nearby resistance ahead of the 1.2665 obstacle, taken from the peak in May 2022. Above that, the 200-weekly simple moving average (SMA) at 1.2854 could act as a strong barrier for traders.
Should prices decline, immediate support could be found around 1.2270, an area which has provided both resistance and support in the previous months. Then in case of a leg below that level, the pair could meet the 50-day SMA at 1.2205 before resting near the uptrend line at 1.2120. Even lower, the focus could shift to the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2545 at 1.2020.
In the long term, the outlook remains positive since prices are holding above all the moving average lines and the bullish cross between the 20- and the 50-day SMA remains in place.
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