Technical Analysis – GBPUSD retreats towards 50-day SMA
GBPUSD generates fresh 2024 peak
But declines sharply towards the 50-day SMA
Momentum indicators weaken significantly
Should bearish pressures persist, the pair could violate the 50-day SMA and challenge the March support of 1.2598, which lies very close to the 200-day SMA. A dive below that region could open the door for the 2024 low of 1.2517. Further declines could then cease at 1.2445, a region that provided both support and resistance throughout 2023.
On the flipside, if the pair reverses back higher, the December resistance of 1.2793 could prove to be the first barricade for the price to overcome. Surpassing that zone, the price may test the June 2023 peak of 1.2847. Even higher, the recent seven-month peak of 1.2892 could come under scrutiny.
In brief, GBPUSD remains a prisoner within its sideways range as its latest upward spike encountered solid resistance. Therefore, the technical picture could deteriorate further in case of a downside violation of the 50-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.
