Technical Analysis – GBPUSD ticks down to new 5-month low
April 12, 2024 11:28 am
GBPUSD slips below trading range
MACD and RSI indicate more losses
Is it time for a bearish retracement?
GBPUSD is falling from the long-term consolidation range of 1.2520-1.2820, meeting the 1.2495 support level. The pair is posting a new five-month low, suggesting that more decreases may be on the cards.
According to technical oscillators, the MACD is extending its negative momentum beneath its trigger and zero lines, while the RSI is pointing down, approaching the 30 threshold.
If the market has a closing day beneath the 1.2495 support, this could open the way for more aggressive selling interest towards the 1.2370 bar. Below that, the 1.2180 hurdle may halt traders taking the market even lower.
On the flip side, a successful climb back above the 200-day simple moving average (SMA) could maintain the sideways channel, hitting the 20- and the 50-day SMA at 1.2620 and 1.2670 respectively. Moving north, the 1.2708 peak is coming next before touching the upper boundary of the range at 1.2820 again.
To sum up, GBPUSD may be at the beginning of a bearish structure in the short-term view, but traders need to be cautious and wait for a closing day beneath the 1.2500 mark.
GBPUSD slips below trading range
MACD and RSI indicate more losses
Is it time for a bearish retracement?
GBPUSD is falling from the long-term consolidation range of 1.2520-1.2820, meeting the 1.2495 support level. The pair is posting a new five-month low, suggesting that more decreases may be on the cards.
According to technical oscillators, the MACD is extending its negative momentum beneath its trigger and zero lines, while the RSI is pointing down, approaching the 30 threshold.
If the market has a closing day beneath the 1.2495 support, this could open the way for more aggressive selling interest towards the 1.2370 bar. Below that, the 1.2180 hurdle may halt traders taking the market even lower.
On the flip side, a successful climb back above the 200-day simple moving average (SMA) could maintain the sideways channel, hitting the 20- and the 50-day SMA at 1.2620 and 1.2670 respectively. Moving north, the 1.2708 peak is coming next before touching the upper boundary of the range at 1.2820 again.
To sum up, GBPUSD may be at the beginning of a bearish structure in the short-term view, but traders need to be cautious and wait for a closing day beneath the 1.2500 mark.
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