Technical Analysis – GBPUSD pauses downside movements
GBPUSD finds support at 20-day SMA
Holds well above rising trend line
Stochastics and RSI indicate upside moves
GBPUSD pulled back from the one-year high of 1.3045 in the previous week, meeting the 20-day simple moving average (SMA), which may act as strong support level for traders.
According to the technical oscillators, the stochastic is standing in the oversold area, but posted a bullish crossover within its %K and %D lines, while the RSI is ticking up above the neutral threshold of 50.
In case of more downside movements, the pair could slip until the 50-day SMA at 1.2780 ahead of the medium-term uptrend line, near the 1.2740 support level.
On the flip side, a bounce off the 20-day SMA could accelerate the market back above the one-year peak of 1.3045. If traders continue to buy the pair, then they may challenge the July 2023 top of 1.3140.
In brief, GBPUSD is currently in a bearish correction mode in the very short-term but is still above the uptrend line and more importantly above the 200-day SMA.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
