Technical Analysis – GBPUSD remains stuck in rectangle pattern
April 28, 2023 1:27 pm
GBPUSD has been experiencing significant swings within a sideways pattern since the beginning of April. In the short term, the ascending 50-period simple moving average (SMA) has repeatedly curbed the pair’s downside, creating a series of higher lows but the pair seems to be struggling to generate higher highs.
The momentum indicators currently suggest that bullish pressures are subsiding. Specifically, the stochastic oscillator is descending after posting a bearish cross, while the MACD histogram fell beneath its red signal line but remains in the positive territory.
Should the selling interest intensify, the pair could meet immediate support at 1.2445, which overlaps with the 50-period SMA. If that floor collapses, the bears might aim for 1.2385 before 1.2345, which is the lower end of the rangebound structure, gets tested. A break below the latter could open the door for the 1.2274 support zone.
Alternatively, if the price edges higher, the recent peak of 1.2514 could prove to be the first barrier for the bulls to clear. Surpassing that region, the pair may ascend to challenge its 10-month high of 1.2545. Further advances could then stall around the 1.2600 psychological mark.
In brief, GBPUSD has been trading without a clear direction for the past month, remaining stuck within a tight range. For the outlook to alter, the pair needs to break above or below its recent neutral structure.
GBPUSD has been experiencing significant swings within a sideways pattern since the beginning of April. In the short term, the ascending 50-period simple moving average (SMA) has repeatedly curbed the pair’s downside, creating a series of higher lows but the pair seems to be struggling to generate higher highs.
The momentum indicators currently suggest that bullish pressures are subsiding. Specifically, the stochastic oscillator is descending after posting a bearish cross, while the MACD histogram fell beneath its red signal line but remains in the positive territory.
Should the selling interest intensify, the pair could meet immediate support at 1.2445, which overlaps with the 50-period SMA. If that floor collapses, the bears might aim for 1.2385 before 1.2345, which is the lower end of the rangebound structure, gets tested. A break below the latter could open the door for the 1.2274 support zone.
Alternatively, if the price edges higher, the recent peak of 1.2514 could prove to be the first barrier for the bulls to clear. Surpassing that region, the pair may ascend to challenge its 10-month high of 1.2545. Further advances could then stall around the 1.2600 psychological mark.
In brief, GBPUSD has been trading without a clear direction for the past month, remaining stuck within a tight range. For the outlook to alter, the pair needs to break above or below its recent neutral structure.
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