Technical Analysis – GBPUSD sellers take a breather but bearish bias rules



GBPUSD is consolidating around the 1.3300 mark, within the 1.3277-1.3362 support zone that has managed to mute negative forces for now. The falling simple moving averages (SMAs) are presently backing the bearish picture in the pair.

The short-term oscillators are suggesting a moderate waning in negative momentum. The MACD, some distance in the negative zone, is holding beneath its red trigger line. The RSI, in bearish territory, is improving from the 30 level, while the stochastic oscillator is promoting advances in the pair.

In the positive scenario, immediate constraints could originate from the 1.3362 mark and the approaching mid-Bollinger band at 1.3424 ahead of the 1.3513 barrier. Overstepping the latter obstacle, buyers may encounter a fortified section of resistance from the 50-day SMA at 1.3566 until the upper Bollinger band, residing at the 1.3606 high. Conquering this crucial border, the bulls could then eye a region of resistance existing between the 100-day SMA at 1.3675 and the 1.3708 level.

Otherwise, if sellers resurface, initial downside friction could transpire from the 1.3277 boundary of the current buffer zone, which happens to also be the 11-month low. Sliding past this, the neighbouring lower Bollinger band at 1.3236 and the 1.3186 low could delay the test of the 1.3105-1.3134 support band. Piercing below this key barricade, the price may then plunge towards the 1.3000 handle before targeting the 1.2913 obstacle.

Summarizing, GBPUSD’s medium-term outlook is growing increasingly negative, as the pair logs lower highs and lows. That said, buyers are fighting back but they would need to drive the price above the 1.3513 high to start to gain some upside momentum.

 

 

Latest News

Technical Analysis – Palladium futures at risk of pullback after aggressive rally


Technical Analysis – Amazon erases 2021 record rally; bearish but oversold


Technical Analysis – AUDUSD refreshes downward forces, bearish risks grow


Technical Analysis – USDCHF unlocks 2-week high with strong rally


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.