Technical Analysis – GBPUSD tries to overcome 50-day SMA and surpass uptrend line
February 9, 2023 2:28 pm
GBPUSD is strengthening its momentum to the upside after the bounce off the 200-day simple moving average (SMA), which overlaps with the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.2050.
Technically, the MACD oscillator is moving sideways near the zero level, failing to show any directional signs, as the market is holding within a medium-term trading range, while the RSI is sloping upwards near the 50 level.
A decisive close above the ascending line and the 1.2260 level could reduce negative risks, producing another bullish extension towards the key 1.2450 resistance. Beyond that, traders will target the 1.2670 barrier, a break of which would reactivate the uptrend.
Otherwise, if sellers take the lead, the pair may pull back to test the nearby support of 1.2050. Falling lower, the lower boundary of the channel at 1.1845 may attempt to add some footing, while not far below, the 38.2% Fibonacci of 1.1640 could block the way towards the 50% Fibonacci at 1.1390.
In brief, GBPUSD is remaining below the uptrend line, in the middle of the consolidation area, but some caution is warranted as the price is swiftly approaching the crucial boundary set around 1.2450.
GBPUSD is strengthening its momentum to the upside after the bounce off the 200-day simple moving average (SMA), which overlaps with the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.2050.
Technically, the MACD oscillator is moving sideways near the zero level, failing to show any directional signs, as the market is holding within a medium-term trading range, while the RSI is sloping upwards near the 50 level.
A decisive close above the ascending line and the 1.2260 level could reduce negative risks, producing another bullish extension towards the key 1.2450 resistance. Beyond that, traders will target the 1.2670 barrier, a break of which would reactivate the uptrend.
Otherwise, if sellers take the lead, the pair may pull back to test the nearby support of 1.2050. Falling lower, the lower boundary of the channel at 1.1845 may attempt to add some footing, while not far below, the 38.2% Fibonacci of 1.1640 could block the way towards the 50% Fibonacci at 1.1390.
In brief, GBPUSD is remaining below the uptrend line, in the middle of the consolidation area, but some caution is warranted as the price is swiftly approaching the crucial boundary set around 1.2450.
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