Technical Analysis – GBPUSD is neutral as the 6-month high puts up a real struggle
January 31, 2023 8:25 am
GBPUSD failed several times over the last one-and-a-half months to surpass above the six-month high of 1.2450 and is struggling to create a new high. The pair remains above the medium-term ascending trend line and the short-term SMAs, awaiting a strong boost for further gains.
However, the MACD is weakening near its trigger line in the positive area, while the RSI is moving sideways above the neutral threshold of 50.
An extension to the upside and above the 1.2450 key level could meet the 1.2670 barrier, registered in May 2022. Further up, resistance could run towards the 200-weekly SMA, which stands near the 1.2900 psychological mark.
On the other hand, if the pair weakens, the 20-day SMA at 1.2260 could provide immediate support ahead of the 50-day SMA, which overlaps with the ascending trend line at 1.2180. Even lower, the 200-day SMA and the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.2050 could attract greater attention as any leg lower could worsen market’s bearish outlook, opening the way towards the 1.1845 support.
Regarding the medium-term picture, the neutral sentiment deteriorated after the difficulty jumping above 1.2450 and only a move above it could now help the market to return to positive.
GBPUSD failed several times over the last one-and-a-half months to surpass above the six-month high of 1.2450 and is struggling to create a new high. The pair remains above the medium-term ascending trend line and the short-term SMAs, awaiting a strong boost for further gains.
However, the MACD is weakening near its trigger line in the positive area, while the RSI is moving sideways above the neutral threshold of 50.
An extension to the upside and above the 1.2450 key level could meet the 1.2670 barrier, registered in May 2022. Further up, resistance could run towards the 200-weekly SMA, which stands near the 1.2900 psychological mark.
On the other hand, if the pair weakens, the 20-day SMA at 1.2260 could provide immediate support ahead of the 50-day SMA, which overlaps with the ascending trend line at 1.2180. Even lower, the 200-day SMA and the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.2050 could attract greater attention as any leg lower could worsen market’s bearish outlook, opening the way towards the 1.1845 support.
Regarding the medium-term picture, the neutral sentiment deteriorated after the difficulty jumping above 1.2450 and only a move above it could now help the market to return to positive.
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