Technical Analysis – GBPUSD stays bearish as key levels come into focus
September 7, 2023 1:27 pm
GBPUSD is giving a negative performance for the third consecutive day, extending its downtrend from July’s peak of 1.3141 to a new three month low of 1.2449.
The ongoing bearish wave is currently testing the 1.2420-1.2470 restricted zone, flirting with the 200-day simple moving average (SMA) too.
Technically, the market is approching oversold levels, according to the RSI and the Stochastic oscillator. Therefore, some consolidation or an upside correction would not be surprising in the near -term. Yet, given the negative trajectory in the momentum indicators, the base scenario is for the sell-off to continue.
If the 200-day SMA proves fragile, the price could tumble towards the 1.2310 region, which overlaps with the 61.8% Fibonacci mark of the 1.1800-1.3141 uptrend. A step lower could halt near the 1.2185 barrier before stretching to 1.2100.
Otherwise, if the price rotates north, traders might want it to go past the 38.2% Fibonacci number of 1.2625 and beyond the resistance trendline from July. If the bulls succeed this mission, the 50-day SMA could be the next target, though only a close above the 23.6% Fibonacci of 1.2820 could clear the way towards the broken support trendline from October 2022 at 1.2915.
In brief, the short-term risk for GBPUSD remains skewed to the downside, with selling interest expected to pick up pace below 1.2420.
GBPUSD is giving a negative performance for the third consecutive day, extending its downtrend from July’s peak of 1.3141 to a new three month low of 1.2449.
The ongoing bearish wave is currently testing the 1.2420-1.2470 restricted zone, flirting with the 200-day simple moving average (SMA) too.
Technically, the market is approching oversold levels, according to the RSI and the Stochastic oscillator. Therefore, some consolidation or an upside correction would not be surprising in the near -term. Yet, given the negative trajectory in the momentum indicators, the base scenario is for the sell-off to continue.
If the 200-day SMA proves fragile, the price could tumble towards the 1.2310 region, which overlaps with the 61.8% Fibonacci mark of the 1.1800-1.3141 uptrend. A step lower could halt near the 1.2185 barrier before stretching to 1.2100.
Otherwise, if the price rotates north, traders might want it to go past the 38.2% Fibonacci number of 1.2625 and beyond the resistance trendline from July. If the bulls succeed this mission, the 50-day SMA could be the next target, though only a close above the 23.6% Fibonacci of 1.2820 could clear the way towards the broken support trendline from October 2022 at 1.2915.
In brief, the short-term risk for GBPUSD remains skewed to the downside, with selling interest expected to pick up pace below 1.2420.
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