Technical analysis – GBPUSD aims to strengthen recovery
July 4, 2023 3:25 pm
GBPUSD is showing signs of improvement in the four-hour chart, aiming to close above the 1.2700 level and the resistance trendline that has been blocking recovery attempts since mid-June.
The RSI is going up above 50 and the MACD is above zero, both backing the latest upturn in the price. Previously, the pair bounced on the ascending trendline from May 25th for the fourth time, adding more credence to its positive trend.
The next challenge, however, could be within breathing distance and specifically somewhere within the 1.2745-1.2765 region, which the bulls proved unable to overcome during the past two weeks. The 61.8% Fibonacci retracement of the previous downfall and the ascending line from mid-June are in the neighborhood. Hence, a successful move higher could be a prerequisite for an advance towards the 1.2800 mark. If buying interest further strengthens, June’s top of 1.2847 and the 1.2880 zone could come under the spotlight.
Should the pair pull below the 50% Fibonacci of 1.2718, the focus will immediately fall on the 1.2688-1.2673 constraining zone, whilst a close below the 23.6% Fibonacci mark of 1.2650 could see another test of the crucial support trendline. A continuation lower would clear the way towards the 1.2600-1.2590 floor. In short, GBPUSD is holding a bullish bias, but it will need to push above the 1.2745-1.2765 zone to boost buying confidence.
GBPUSD is showing signs of improvement in the four-hour chart, aiming to close above the 1.2700 level and the resistance trendline that has been blocking recovery attempts since mid-June.
The RSI is going up above 50 and the MACD is above zero, both backing the latest upturn in the price. Previously, the pair bounced on the ascending trendline from May 25th for the fourth time, adding more credence to its positive trend.
The next challenge, however, could be within breathing distance and specifically somewhere within the 1.2745-1.2765 region, which the bulls proved unable to overcome during the past two weeks. The 61.8% Fibonacci retracement of the previous downfall and the ascending line from mid-June are in the neighborhood. Hence, a successful move higher could be a prerequisite for an advance towards the 1.2800 mark. If buying interest further strengthens, June’s top of 1.2847 and the 1.2880 zone could come under the spotlight.
Should the pair pull below the 50% Fibonacci of 1.2718, the focus will immediately fall on the 1.2688-1.2673 constraining zone, whilst a close below the 23.6% Fibonacci mark of 1.2650 could see another test of the crucial support trendline. A continuation lower would clear the way towards the 1.2600-1.2590 floor.
In short, GBPUSD is holding a bullish bias, but it will need to push above the 1.2745-1.2765 zone to boost buying confidence.
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