GBPUSD trimmed some gains after the 1.2800 round level blocked last week’s quick rally, with the price correcting down to 1.2690 on Wednesday.
Traders might keep selling the pair as the RSI and the stochastic oscillator seem to have peaked in the overbought region, suggesting that the latest bull run is overdone.
On the downside, the next support could commence near the 1.2650 level, where the red Tenkan-sen line and May’s peak are positioned. Then, the bears could target the 1.2570-1.2500 constraining zone, formed by the 2021 descending trendline and the short-term ascending line. Should the bears push lower, the price could sink towards May’s low of 1.2300.
Otherwise, the bulls may re-challenge the 1.2800 ceiling and the support-turned-resistance trendline from September. A successful penetration of this border could clear the way towards the 1.3000-1.3040 zone composed by the 61.8% Fibonacci retracement of the 1.4248-1.0324 downtrend and the October ascending line. The 1.3150 barrier could be the next destination.
Overall, GBPUSD could give up some extra ground in the short-term, especially if the 1.2650 floor proves fragile.
GBPUSD trimmed some gains after the 1.2800 round level blocked last week’s quick rally, with the price correcting down to 1.2690 on Wednesday.
Traders might keep selling the pair as the RSI and the stochastic oscillator seem to have peaked in the overbought region, suggesting that the latest bull run is overdone.
Otherwise, the bulls may re-challenge the 1.2800 ceiling and the support-turned-resistance trendline from September. A successful penetration of this border could clear the way towards the 1.3000-1.3040 zone composed by the 61.8% Fibonacci retracement of the 1.4248-1.0324 downtrend and the October ascending line. The 1.3150 barrier could be the next destination.
Overall, GBPUSD could give up some extra ground in the short-term, especially if the 1.2650 floor proves fragile.
Related Posts: