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Technical Analysis – GBPUSD declines after BoE’s decision

  • GBPUSD fails to extend above 20-day SMA

  • Price remains beneath short-term uptrend line

  • Momentum oscillators head south

GBPUSD is falling after the BoE interest rate decision, retesting the 1.2670 support level and still standing beneath the steep uptrend line. The pair may find immediate support at the 1.2360-1.2670 region, which is also near the 50-day simple moving average (SMA) at 1.2620. Even lower, the 200-day SMA, which lies near the mid-level of the longer-term trading range at 1.2550, may halt the bearish movements.

The technical oscillators are suggesting downside movements. The stochastic is flattening above the 20 level and the RSI is pointing south below the neutral threshold of 50.

In the positive scenario, a climb back above the 20-day SMA at 1.2740 could bring the price towards the 1.2820 resistance level that failed several times in the past month to surpass it. Despite the spike towards the three-month high of 1.2860, the pair remains within the consolidation area of 1.2300-1.2820.

All in all, GBPUSD will remain neutral until there is a rally beyond the six-month high of 1.2892 and the 1.3000 round number.  

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