Technical Analysis – GBPUSD under bullish control but confirmation required



GBPUSD closed marginally above its 50-day simple moving average (SMA) on Monday at 1.2244 for the first time since February, violating at the same time the upper surface of a bearish channel.

Despite today’s stabilization, there are still hopes for further progress given the upward trend in the RSI, which is currently hovering clearly above its 50 neutral mark, as well as the strength in the MACD, which has climbed into the positive region.

That said, traders may wait for additional winning sessions, and particularly a durable move above the nearby resistance area of 1.2312 – 1.2400, before they target May’s top of 1.2665. If the bulls successfully claim the latter, officially signaling a trend reversal, the price could pick up steam towards the 1.2843 minor barrier, which was more active during the 2019 – 2020 period. Higher, the pair will seek another advance above the key 200-day SMA at 1.2960.

In the case the price pulls back into the bearish channel, the 1.2060 – 1.2000 region may attempt to prevent a freefall towards the 28-month low of 1.1758. Failure to change direction here could press the price towards the channel’s bottom line currently seen at 1.1640, while even lower, all attention will turn to the pandemic trough of 1.1408.

In summary, GBPUSD is still surrounded by positive vibes following its latest bullish breakout. Buyers will next look for a close above the 1.2312 – 1.2400 zone before they raise exposure in the market.


Latest News

Nonfarm payrolls: More bad news for the Fed? – Forex News Preview


Technical Analysis – USDJPY pauses near 145.00 mark; bias titled to the upside


Daily Market Comment – Yen flirts with intervention level, UK budget U-turn lifts pound



Technical Analysis – Gold guards latest rebound; more obstacles ahead

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.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.