Technical analysis – GBPUSD drifts lower after upbeat US jobs data
June 2, 2023 2:27 pm
GBPUSD slid to 1.2492 in the wake of an upbeat US nonfarm payrolls report, staying below the nearby 1.2532 resistance area, even though it quickly inched back above 1.2500.
Technically, the pair touched the 50% Fibonacci retracement of the 1.2678-1.2307 downleg before edging up, though selling pressures may not fade away. The RSI and the Stochastic oscillator seem to have peaked in the overbought zone, signaling a potential correction lower in the four-hour chart.
If selling forces resurface below 1.2493, the 200-period SMA and the 38.2% Fibonacci area of 1.2450 could come to the rescue. Otherwise, the spotlight will turn to the 23.6% Fibonacci level of 1.2395 and the short-term support trendline seen around 1.2360.
In the positive scenario, where the price closes above 1.2535, the attention will shift to the 61.8% Fibonacci number of 1.2560. Then, the bulls will need to pierce through the long-term resistance trendline at 1.2583 in order to rally towards the broken ascending trendline near 1.2640.
All in all, GBPUSD is looking cautiously bullish in the very short-term picture, with traders expected to stay on the sidelines, unless the price breaks above 1.2535 or below 1.2493.
GBPUSD slid to 1.2492 in the wake of an upbeat US nonfarm payrolls report, staying below the nearby 1.2532 resistance area, even though it quickly inched back above 1.2500.
Technically, the pair touched the 50% Fibonacci retracement of the 1.2678-1.2307 downleg before edging up, though selling pressures may not fade away. The RSI and the Stochastic oscillator seem to have peaked in the overbought zone, signaling a potential correction lower in the four-hour chart.
If selling forces resurface below 1.2493, the 200-period SMA and the 38.2% Fibonacci area of 1.2450 could come to the rescue. Otherwise, the spotlight will turn to the 23.6% Fibonacci level of 1.2395 and the short-term support trendline seen around 1.2360.
In the positive scenario, where the price closes above 1.2535, the attention will shift to the 61.8% Fibonacci number of 1.2560. Then, the bulls will need to pierce through the long-term resistance trendline at 1.2583 in order to rally towards the broken ascending trendline near 1.2640.
All in all, GBPUSD is looking cautiously bullish in the very short-term picture, with traders expected to stay on the sidelines, unless the price breaks above 1.2535 or below 1.2493.
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